Exam 23: Negotiable Instruments

Emily writes and signs a check payable to "Festival Cinema." Georg,Festival's manager,indorses the check "For deposit only." This is

To be negotiable,an instrument must be payable on demand.

An order instrument must identify the payee with certainty.

To finance the purchase of a house from Tuna,Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10,2045. To be negotiable,this instrument must include the signature of

An unauthorized signature binds the person whose name is signed.

Idina wants to buy a promissory note from Jill. The note is due on April 1.a.m. on April 1 To become an HDC,Idina must buy the note

A demand instrument is payable immediately after it is issued.

Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim,defense,or defect. With respect to this check,Todd is

For an instrument to be negotiable,it must be in writing.

Bart,the owner of Clear Cut Corporation,signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is

On the back of an envelope,Phoebe writes,"I promise to pay Quint or bearer $600 on de-mand. [Signed] Phoebe." What type of instrument is this? Is it nego-tiable? If not,why not?

A promissory note must name a specific payee to be negotiable.

A holder cannot become an HDC if he or she has notice of any claim to the instrument or defense against it.

Erin draws a check payable to "Foodland" to buy groceries. -Refer to Fact Pattern 23-1. Erin's check is most likely

Petra signs a check payable to Quentin,who indorses the back,gives it to Regional Credit Union (RCU),and receives cash. The transfer of the check from Quentin to RCU is

All parties to a negotiable instrument will be discharged when the party primarily liable on it pays to a holder the full amount due.

Failure to present an instrument on time is not improper presentment.

Avril receives a payroll check from Business Solutions,Inc.,and indorses it by signing her name on the back of the check. This is

Mortimer negotiates an instrument to Nelson. Negotiation is the transfer of an instrument

A time draft is payable at a definite future time.