Exam 15: Negotiable Instruments

Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is likely

Fact Pattern 15-3 To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030. -Refer to Fact Pattern 15-3.With respect to this instrument, Bea is

Fact Pattern 15-3 To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030. -Refer to Fact Pattern 15-3.With respect to this instrument, Country Bank is

Quincy draws a check payable to "Replay Stadium" to buy two season tickets to the next year's State College football games. This instrument is

Fact Pattern 15-2 LNG Corporation and Mid-state Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mid-state Utility to pay $50,000 to LNG's order in sixty days. Mid-state Utility signs and dates the draft. -Refer to Fact Pattern 15-2.On this instrument, LNG is

On a certificate of deposit, the bank is the maker and the depositor is the payee.

To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is

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

The most common type of draft is a check.

A demand instrument is payable immediately after it is issued.

For an instrument to be negotiable, it must not contain an express promise or order to pay.

On a trade acceptance, the drawer is also the drawee.

Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is

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

Fred has six nieces, ages five to sixteen. He writes an order instrument for $50 that states "Pay to the order of my niece." The order instrument is

Theo signs a check payable to the order of Urban Bank, filling in the blanks for the amount with the figures "$100" and "One thousand and 00/100 dollars." This check is payable in the amount of

To be negotiable, an order to pay must be addressed to only one person.

Laura writes on a piece of paper, "I owe you $400," signs it, and gives it to Max. This instrument is

Instruments that say nothing about when payment is due are payable on demand.