BL 26
A draft that is payable "thrity days after sight" is an example of a sight draft
False
A writing that says"IOU $500" is negotiable
False
An instrument payable when a person marries is negotiable
False
If the drawee refuses to pay an unaccepted draft, the draft is dishonored, and the drawee is liable for refusing to pay it
False
In contrast to notes, which are orders to pay money, drafts are promises to pay money
False
Negotiable instruments, except for checks, must be payable to order or to bearer
True
Under the UCC, a bank money order is a check and payment can be stopped on it like an ordinary check
True
When a check is certified, the drawer is discharged regardless of when it was done or who obtained the acceptance
True
A holder of a demand note may decide to collect the balance due at any time and for any reason
True
The person to whom a negotiable instrument is made payable
payee
The omission of the date affects the negotiability of an instrument
False
The two types of negotiable instruments that contain a promise to pay money are notes and drafts
False
A CD is a note of the bank
True
A cashier's check is a check drawn by a bank upon itself
True
A check is the most common form of draft
True
An acceptance must be written on the draft itself; it may not be written on a separate piece of paper
True
A drawee of a draft who has promised to honor the draft is presented by signing it on its face
acceptor
the person in physical possession of a commercial paper indorsed in blank or payable to bearer
bearer
a draft drawn on a bank and payable on demand
check
An order instrument through which the person writing it orders another person to pay moeny to a third person
draft
the person on whom a draft or check is drawn
drawee
the person who creates a draft or check by writing it
drawer
an ordinary note in which the principal is payable in a series of payments at specified times
installment note
the person who makes and signs a promise instrument such as a promissory note
maker
A written order on the drawee to pay on demand the amount named in the instrument
sight draft
