Exam 25: Transferability and Holder in Due Course

Mike receives a payroll check from National Computer Systems,Inc.,and indorses it by signing his name on the back of the check.This is

To pay for investment advice from financial consultants Smith and Jones,Tony signs a check payable to "Smith or Jones." A proper in?dorsement of the check is

Velma transfers a note by signing it and delivering it to Woz.Woz is

An instrument is not defective simply because it is overdue.

A person who accepts an instrument that has been completed without knowing that it was incomplete when issued can take it as an HDC.

A negotiable instrument can only be transferred by negotiation.

Jill,in good faith and for value,gets from Kit a check "payable to the order of bearer." Jill does not know that Kit stole the check.Jill is

Gina writes and signs a check payable to "Happy Market." Ira,Happy's manager,indorses the check "For deposit only." This is

An instrument payable to two persons jointly requires the indorsement of only one of the payees for negotiation.

An order instrument is negotiated by delivery with any necessary indorsements.

A special indorsement does not specify a particular indorsee.

For an ordinary holder to become an HDC,the holder must have acted honestly in the process of acquiring the instrument.

An indorser who does not wish to be liable on an instrument can use a qualified indorsement.

Under the UCC,a transfer of rights under a contract is a negotiation.

Blythe,an accountant for Credits & Debits,acquires a negotiable instru?ment from Eton by promis?ing to pay its face value in thirty days.Blythe ac?quires the status of an HDC when she

Lauren transfers an instrument to Miguel in a form and by a means that makes Miguel a "holder." This is

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

Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.

Fact Pattern 25-A1 (Questions A5-A8 apply) Rollo obtains a check payable to his order from Simone.Rollo signs the back and gives the check to Trey.Trey writes "Pay to Trey" above Rollo's signature. -Refer to Fact Pattern 25-A1.When Trey writes "Pay to Trey" above Rollo's signature,Rollo's signature becomes

Indorsement can convert an order instrument into a bearer instrument