LW-406 Test II
David Goldberg writes a check payable to Sarah Bloom for $1000. Sarah negotiates the checks to Esther, who changes the amount of the check to $7000 and deposits it into her account. Esther's bank presents the check to First Bank for payment. First pays $7,000 for the check. When David discovers the overpayment, he demands his account be reaccredited. First Bank owes David:
$6000
A financing statement must contain with of the following?
A description of the collateral.
A $5000 promissory note payable to order of Neptune is discounted to Bane by blank indorsement for $4000. King steals the note from Bane and sells it to Ott, who promises to pay King $4500. After paying King, $3000, Ott learns that King stole the note. Ott makes no further payment to King. Ott is
A holder in due course to the extent of $3,333
On January 16, Denise issued a check drawn on the ABC Bank payable to Pauline for $5000. Pauline negotiated the check to her neighbor, Ned, as payment for some patio furniture. Ned deposited the check into his account with the DEF Bank on January 19. DEF presented the check for payment on Friday, January 20 The check was marked "NSF" and returned to DEF on Monday, January 23. Which of the following are true statement?
ABC made a timely dishonor. They had until their midnight deadline (midnight of the banking day following the banking day of presentment) to dishonor the instrument.
On April 1, 2022 Dan wrote a check in the amount of $5000 payable to Pete. On April 15, 2022 Pete indorsed the check and delivered it to Horatio. Horatio indorsed the check and negotiated it to Helen on May 15, 2022. Which of the following statements is true?
Assume Helen presented the check to the drawee bank for payment on May 20, 2022 and that the bank refused to pay. If Helen gives prompt notice of dishonor Horatio is liable on his indorser's contract.
Beneficial Finance, Inc. (BFC) purchased a $6000 promissory note for $4000 payable in two years. It paid $1000 initially and promised to pay the balance in 20 days. Before BFC paid the balance it learned that the note had been obtained by fraud in the inducement. To what extent, if at all, will BFC be considered a HDC?
BFC will qualify as an HDC of $1500 regardless of whether it pays the additional $3000
Bo sells Fay a piece of equipment and receives a PMSI on May 16. Fay received the equipment on the same day. On May 20, an unsecured creditor levies on the equipment pursuant to a judgment, creating a judicial lien. On May 25, Bo files a financing statement. Which of the following is a true statement?
Bo has priority over the lien creditor.
Joey, Michael and Andy signed the following promissory note: July 3, 2020 On or before 6 months fro date we promise to pay to the order of Johns Construction Company, the sum of $3000. /s/ Andy Johnson /s/ Michael Johnson /s/ Joey Johnson Johns Construction endorsed the note in blank and sold it at discount to Carolina Finance Company. When the note matured, Carolina sued Andy, demanding the entire amount.
Carolina will recover against Andy
One of the requirements needed for a holder of a negotiable instrument to be a holder in due course is the value requirement. Cindy is the holder of a $1000 check written out to her. Which of the following would not satisfy the value requirement?
Cindy received the check in exchange for a promise to do certain specified services three months later.
Commercial Factors, Inc., purchased for $4,500 a $6,000 promissory note payable in two years. It paid $1500 initially and promised to pay the balance within 10 days. Before Commercial Factors paid the balance, it learned that the note had been obtained originally by fraud in the inducement. To what extent will Commercial Factors be considered a HDC?
Commercial Factors will qualify as a HDC of $2000 regardless of whether it pays the additional $3,000.
Tom stole one of Vera's checks. The check, drawn on the Last National Bank, was already signed by Vera and made payable to Adrian.tom forged Adrian's signature on the back of the check and cashed it at the Corner Check Cashing Company, which in turn deposited it in its account at First National Bank. First forwarded the check to Last for collection and Last paid the item. Who will bear the loss?
Corner Check Cashing Company
Denis borrows $25,000 from Chuck Creditor. Denis then buys a piece of equipment for use in his contracting business on credit from Equipment Supply Company (ESC) granting ESC a security interest in the equipment to secure payment of the purchase price. ESC fails to file a financing statement. Who has priority?
ESC has priority. A security interest, even an unperfected security interest, has priority over an unsecured creditor.
Perfection of a security interest permits the secured party to protect its interest by:
Establishing priority over the claims of most subsequent secured creditors.
Mr. Green is the holder of a check which was originally drawn by Susan and made payable to Rob. Rob properly indorsed the check to Azul. Azul had the check certified by the drawee bank (Fifth Third) and then indorsed the check to Green. As a result:
Fifth Third becomes primarily liable and both Rob and Susan are discharged from liability
Andrea Connelly, an employee in the Human Resources department of Acme Corporation, prepared the monthly payroll and checks for the corporation. Andrea added the name of Barry Corker, a fictitious person, to the payroll and prepared a check to his order. The treasure, who did not know the true facts, signed the check in good faith. Andrea then indorsed the check with the name of Barry Corker, negotiated the check to the First Avenue Grocery Store, obtained the money and fled the country. First Avenue induced the check and cashed the check at Last National (Acme's bank). Which of the following is a true statement?
First Avenue was an HDC.
Robin is the holder of a check which was originally drawn by Adam and made payable to Brian. Brian properly indorsed the check to Marc. Marc had the check certified by the drawee bank (First National) and then indorsed the check to Gene. As a result:
First National becomes primarily liable and both Adam and Brian are discharged.
Denise Drawer owned a company that provided limo services to and from BWI airport. She needed a new limo and bought one from Limos, Inc, paying with a check for $75,000. Unfortunately, after the limo was delivered she discovered a major problem with the transmission and stopped payment on the check. However, before Denise stopped payment, Limos had negotiated the check to First National, a HDC. Which the following is a true statement?
First National will be able to recover on the instrument because a HDC takes free from all personal defenses and Denise only has a personal defense.
Green is the holder of a check drawn by Ted on the First National Bank. The check was made payable to Roy. Roy properly indorsed the check and delivered it to Marsh. Marsh had the check certified by First, indorsed the check and negotiated it to Green. As a result:
First becomes primarily liable on the instrument and both Roy and Ted are discharged from liability
On January 15, Bean granted Davis a security interest in a negotiable document under the terms of a written security agreement. On February 5, Bean granted Franklin a security interest in the same document. Franklin promptly filed a financing statement. On February 7, Davis filed a financing statement. If Bean defaults (fails to pay both David and Franklin), who has priority in the document?
Franklin has priority.
Payne borrowed $500 from the First National Bank, executing a promissory note promising repayment. At the time the loan was made to Payne, Gem agreed with First that Gem would repay the loan if Payne failed to do so. Gem signed the back of the note as surety. Under the circumstances:
Gem is secondarily liable to repay the loan.
On May 1, Great Buys sells Dan Debtor a television set on credit for his own personal use taking in return a security interest in the television set to secure repayment. Great Buys fails to file a financing statement. On June 1, Dan files a bankruptcy petition. On June 15, Great Buys files a financing statement. The trustee has claimed an interest in the television set.
Good Buys will win.
Jane Jones, the President of Good Company, Inc., signs a promissory note as authorized by Good Company. The note is signed "Jane Jones, for Good Company, Inc."
Good Company is liable for Jane Jones is not because she only signed as an agent and clearly indicated her representative capacity.
Andy decided to start a business. He needed a business loan. Mike agreed to loan Andy $100,000 if he would issue a promissory note payable in the amount of $110,000 and obtain a co-signer on the note. Andy agreed. Joey agreed to co-sign the note for Andy. Andy and Joey both signed the front of a note issued to Mike and payable on July 7, 2021. Mike indorsed the note in blank and negotiated it to Friendly Finance Co. (FFC) at discount. Assume FFC is a HDC.
If Joey is forced to pay FFC on his surety's promise, he is entitled to reimbursement of $110,000 from Andy.
Achilles purchased office supplies from Homer and upon delivery he issued a promissory note payable to the order of Homer and indorsed by Julius. At maturity Homer presented the note for payment and Achilles failed to pay. Home gave Julius due notice of dishonor. In Homer's action against Julius, Julius defended arguing that he indorsed only as a surety and that Homer knew that.
If Julius pays the instrument at maturity, he may recover the full amount from Achilles.
Maggie Maker writes a note payable to the order of Bill Johnson. Bill signs his name on the back of the check and gives the note to Lynn. Lynn signs her name and adds "Pay P.J. McDougal." What is the status of this note?
It is now order paper and cannot be negotiated without P.J.'s indorsement.
On October 9, Sam granted Cynthia a security interest in a negotiable document under the terms of a written security agreement. On November 1, Sam granted Joy a security interest in the same document. Joy promptly filed a financing statement. On November 7, Sam filed a financing statement. If Sam defaults (fails to pay both Cynthia and Joy), who has priority?
Joy has priority.
Tom stole one of Danielle's check and made it payable to himself forging Danielle's signature. The check was drawn on the Last National Bank. Tom deposited the check into his account at First National, which in turn forwarded it to the Second National Bank. Second presented the check to Last who paid the item. The theft and forgery were discovered promptly and both Second and First National were duly notified. Who will bear the loss assuming the amount cannot be recovered from Tom and no one was negligent?
Last National
Beth made a note payable to Jo as a birthday present. The note was stolen from Jo by Tom Thief, who induced the check "Jo" and transferred it to Meg. Meg then negotiated the note for value to March.
March may recover from Meg for breach of the warranty of good title. March may recover from Meg for breach of the warranty that all signatures are genuine.
Which of the following satisfies the requirements for negotiability, assuming the other requirements are also met?
Mary Maker promises to pay to the order of Bob King $5,000 for his car
On May 5, 2022, Abe gave Mary a check for $100 drawn on the Federal Sate Bank. Mary presented the check for payment the next morning at the Federal State Bank. A teller at the bank told Mary to return before the bank closed for the day. She demanded immediate payment.
Mary is entitled to payment before close of business on the day of presentment.
Chase is in possession of an otherwise negotiable instrument that reads: "I, Donny Dickson, hereby promise to pay to the order of Mary Robinson...." Which of the following is a true statement?
Mary's signature is required to negotiate the instrument.
Dan Drawer wrote a check for $150 to Pete Payee on March 1. Pete cashed the check at its bank on July 3 and it was dishonored on July 15 because Dan had stopped payment on the check. Is the bank an HDC?
No, because the bank had knowledge that the check was overdue.
Joe Jones is in possession of a check payable "to the order of Joe Jones". Joe indorses it specially to Pam Smith and gives it to Pam. Pam indorses it "without recourse, /s/ Pam Smith." She loses the check. It is found by Frank. Frank forges the name of Buster Bucks on the check and cashes it at the Grocery. Has Frank breached the transfer warranty of good title?
No.
Freddy Freeloader stole Sidney's checkbook from his office without his knowledge and used one of the checks on the Last National Bank (Last) to purchase a flatscreen television set from Good Buys (Good) passing himself off as Sidney. Good indorsed the check the deposited it into the stores' checking account with the Merchants State Bank (MSB). MSB presented the check to Last, who paid it. When Sidney discovered the missing check and the forgery he promptly notified Last. Which of the following is a true statement?
None of the above are correct.
Lisa borrowed $500 from the Last National Bank (Last), executing a promissory note promising repayment on July 1 of the following year. At the time the loan was made to Lisa, Opal agreed with Last that Opal would repay the loan if Lisa failed to do so. Opal signed the bak off the note as surety. Under the circumstances:
Opal is secondarily liable to repay the loan
Mike's Pizza Shop (Mike's) grants Maryland Bank a security interest in "all equipment now owned or hereafter acquired" on May 1. Maryland Bank advances Mike's $10,000 based on their agreement and files a financing statement. On June 1, Mike's buys a new pizza oven granting the supplier (Ovens, Inc) a PMSI. Ovens files a financing statement on June 9. Unfortunately, pizza sales were less than anticipated and Mike's defaults on both loans. Maryland Bank and Ovens are claiming in interest in the oven. Who has priority?
Ovens has priority. As a PMSP on non-inventory collateral, they can get priority over prior perfected secured parties as long as they perfect within 20 days from the date the debtor acquired the collateral.
The Last National Bank advances money to Debbie taking in return a security interest in equipment to secure repayment. Last fails to file a financing statement. Subsequently, Debbie borrow money and grants a security interest to the Second National Bank in the same equipment. Second files a financing statement. Who has priority?
Second
On April 13, Doris grants a security interest in inventory to First National Bank. First fails to file a financing statement. On April 15, Doris grants a security interest to Second National Bank in the same collateral. Second promptly files a financing statement. On April 20, First files a financing statement. If Doris fails to pay both First and Second, who has priority?
Second has priority because between two perfected secured parties, the first one to file or to be perfected has priority.
On April 1, Dan grants a security interest to First National Bank in equipment. First fails to file a financing statement. On May 1, Dan grants a security interest to Second National Bank in the same equipment. Second promptly files a financing statement. If Dan fails to pay both First and Second, who has priority?
Second has security because it perfected its security interest. A perfected security interest beats an unperfected security interest.
A negotiable draft is drawn by Agatha Smith is addressed to Sheldon Cooper at the drawee, and is payable to Howard Lee. It is indorsed by Howard, followed by an indorsement by Stan Jones. To hold the parties liable on their contracts, presentment must be made to:
Sheldon Cooper
Donna buys a television set from the Small Television Store for her new entertainment room, giving Small a security interest in the television set to secure repayment. Small fails to file a financing statement. Donna then borrows $1000 from the First National Bank giving First a security interest in the same television set to secure repayment. First files a financing statement. If Donna fails to repay both Small and First, who has priority in the television set?
Small has priority. They were automatically perfected. Therefore, the first party to perfect has priority.
Sue indorses a check "without recourse" an negotiates the check to the Big Grocery Store in exchange for groceries. Big Grocery indorses the check and deposits the check in its account at State Bank. State Bank indorses and presents the check to the drawee bank, Magnolia Bank for payment. Who has made a transfer warranty?
Sue and Big Grocery,
On June 18, Susan sells Frank a piece of equipment and receives a PMSI to secure repayment of the purchase price. The property is delivered to Frank on that day. On June 25, an unsecured creditor levies on the same piece of equipment creating a judgment lien. On June 26, Susan files a financing statement. If both Susan and the judgment lien creditor claim an interest in the piece of equipment, who has priority?
Susan has priority. A holder of a PMSI who perfects within 20 days from the date the debtor receives delivery of the collateral has priority over a subsequent lien creditor.
On January 15, the Appliance Store sells Dan Debtor a television set on credit for his own personal use, taking in return a security interest in the television set to secure repayment. The Appliance Store fails to file a financing statement at that time. On April 1, Dan files a bankruptcy petition. On April 5, the Appliance Store files a financing statement. The trustee has contested the priority of the security interest.
The Appliance Store will win.
Danielle Dabney writes a check drawn on the Last National Bank and made payable to Penny Pepper. Before the check can be delivered to Penny, Tom Thief steals the check and forges her signature. Tom takes the check to the First Avenue Grocery Store and the Grocery Store takes the check as payment for groceries. First then deposits the check into its account with the Second National Bank, who negotiates it to the Third National Bank, who presents it for payment to Last.
The Grocery Store has breached both the presentment warranty and transfer warranty of good title.
A customer's account has a balance of $3000; he deposits check #1 in the amount of $2,500; and at 11:00 he deposits check #2 in the amount of $3,000. On the next day the customer withdraws $4,000 from the account. Thereafter, both checks bounce since payment has been stopped on each of them. Since the customer has vanished without a trace, the bank sues the drawer on the checks alleging HDC status.
The bank is a HDC for $1500 of check #1 and none of check #2
A customer's account has a balance of $3000 at 9am; at 10am he deposits check #1 in the amount of $1500; and at 11am he makes a cash deposit of $1000. At 2pm he deposits check #2 in the amount of $2000. Later that afternoon, he withdraws $4000 from the account. The next day, he withdraws $2000. Thereafter, both checks bounce because payment has been stopped on each of them. Because the customer has vanished without a trace, the bank sues the drawer on the checks alleging HDC status.
The bank is a HDC for the full value of check #1 and $500 of check #2.
In November 2018, Edward Bauerband borrowed $25,000 from the Minster State Bank alleged on behalf of himself and his wife, Michele. Minster issued a check payable to Edward and Michelle. At that point, Edward indorsed the check in his name and forged Michelle's name to the back of the check. He deposited the check into his account at Baybank National Bank. Baybank presented it for payment and Minster paid the item. When the forgery was discovered, Minster sued Baybank for breach of warranty. Which of the following is a true statement?
The indorsement is effective under the imposter rule
Under Article 3, which of the following circumstances would prevent a person from becoming a HDC?
The person was notified that payment was refused
Joe sells $10,000 worth of supplies to A & M Construction on credit on January 1, 2016, taking in return a security interest in equipment. Joe fails to file a financing statement. On April 16, A & M files a B/P. The trustee in bankruptcy claims the equipment as part of the bankruptcy estate. Joe wants to repossess the equipment and sell it. Who has priority?
The trustee
Dan wrote a check payable to Pete and delivered it on January 1, 2022. On January 15, 2022, Pete indorsed it and delivered the check to Henry. On February 15, 2022, Henry indorsed it and delivered the check to Hank. Which of the following statements is correct?
Two of the above
MIke's Pizza Shop is in the business of selling pizza related appliances and merchandise. It grants Maryland Bank a security interest in "all inventory now owned or hereafter acquired" on May 1. Maryland Bank advances Mike $10,000 based on this agreement a promptly files a financing statement. On June 1, Mike orders a supply of new oven mitts, shirts and miniature pizza ovens for his inventory from his supplier (Pizza Supplies) granting them a PMSI. Pizza Supplies files a financing statement on June 9. Mikes defaults on both loans and both Maryland Bank and Pizza Supplies claim an interest in the supplies furnished on June 1. Who has priority?
Two of the above (Choose only this answer if you believe two of the above answers are correct).
A note is a:
Two party instrument where a maker promises to pay a payee.
Grey Corp. sells computers to the public. Grey sold and delivered a computer to West on credit. West executed and delivered to Grey a promissory note for the purchase price and a security interest covering the computer. West purchased the computer for personal use. Grey did not file a financing statement. Is Grey's security interest perfected?
Yes, because it was perfected at the time of attachment.
Kline is holding a promissory note on which he is the payee and Breck is the maker. One of the terms of the note states that payment is subject to the terms of a contract dated March 1 of the current year between Breck and Kline. Does this term destroy negotiability?
Yes, since this term causes the note to have a conditional promise
Kline is holding a promissory note on which he is the payee and Breck is the maker. One of the terms of the note states that payment is subject to the terms of a contract dated March 1 of the current year between Breck and Kline. Does this term destroy negotiability?
Yes, since this term causes the note to have a conditional promise.
Joe Jones is in possession of a check payable "to the order of Joe Jones". Joe indorses it in blank and gives it to Pam Smith. She loses the check. It is found by Frank. Frank forges the name of Buster Bucks on the check and cashes it at the Grocery. Is the Grocery a holder?
Yes.
Scarlett O'Hara makes a promissory note payable to Rhett Butler, repayment to be made in a balloon payment at the end of the 12 month period. Furthermore, monthly interest payments are to be made in installments on the 15th of each month beginning in June. Rhett sells the note at a discount to the Rebel State Bank on the 17th of June. The note has written on it in big letters a penciled notation "missed paying first installment." Can Rebel State Bank qualify as an HDC?
Yes.
Ted Murdock makes a note payable to the order of Jimmy Olsen. Jimmy indorses it in blank. After this indorsement, the note is:
bearer paper, which can be further negotiated by delivery only.
Frank Forger steals a pad of checks from Debbie Davis. On March 1, the bank pays forged check #1 for $300. On March 5, the bank pays forged check #2 for $325. On March 20, Debbie receives her bank statement revealing the forged checks. On March 25, the bank pays check #3 forged by Frank for $700. Forged checks #4 and #5 are paid on April 25 for $600 and $700 respectively. On April 27, Debbie notifies the bank of the forgeries and demands recredit for all 5 items. Under these facts Denise:
can recover on checks #1, 2, and 3, but loses her right to recover on checks #4 and 5.
When a depositor receives his cancelled checks on July 1st and fails to discover and report a forged check by August 1, he:
can recover on the forged check, but loses his right to recover for subsequent forgeries by the same forger made before the bank is notified.
Dave Drawer draws and delivers a check payable to the order of Speedy Star. Star endorses the check in blank and puts it in his wallet. Larsen E. Jones takes Star's wallet and attempts to use the check to pay for groceries at the Second Avenue Grocery Store. Second requires a signature, so Jones forges the check "Charlie Dondo." This forgery:
is irrelevant as far as negotiation is concerned.
A note, otherwise negotiable, containing the phrase: "Payable on January 1, 2030, but if my Uncle Joe dies before this note is due, it shall become payable 10 days after distribution of his estate." is:
negotiable
An instrument, otherwise negotiable, which is payable "at the prime rate of interest on today's date as set by Chase Manhattan Bank", is:
negotiable
Michelle operates a bookstore in the name of Best Books. She orders a shipment of books from her supplier, financing the purchase. In return for the books, she signs and delivers to Information, Inc., the following promissory note. Promissory Note June 30, 2015 Ninety (90) days from date, I promise to pay to pay to the order of Information, Inc., the sum of $10,000 with interest at the prime rate as set by the Last National Bank on today's date. This amount is for supplies purchased pursuant to a contract entered into between the parties on today's date. In the event that the holder shall deem himself to be insecure, the entire obligation becomes immediately due and payable. If the maker is unable to pay the note when it becomes due, the note may be extended for 30 days, at the option of the maker. In the event of default, the maker agrees to pay collection costs and attorney's fees. /s/ Best Books Best Boo
negotiable
Michelle operates a bookstore in the name of Best Books. She orders a shipment of books from her supplier, financing the purchase. In return for the books, she signs and delivers to Information, Inc., the following promissory note. Promissory Note June 30, 2015 Ninety (90) days from date, I promise to pay to pay to the order of Information, Inc., the sum of $10,000 with interest at the prime rate as set by the Last National Bank on today's date. This amount is for supplies purchased pursuant to a contract entered into between the parties on today's date. In the event that the holder shall deem himself to be insecure, the entire obligation becomes immediately due and payable. If the maker is unable to pay the note when it becomes due, the note may be extended for 30 days, at the option of the maker. In the event of default, the maker agrees to pay collection costs and attorney's fees. /s/ Best Books Best Book
negotiable
On February 15, 2001, P.D. Stone obtained the following instrument from Astor Co. for $1000. Stone was aware that Helco, Inc. disputed liability under the instrument because of an alleged breach by Astor of the referenced computer purchase agreement. On March 1, 2001, Willard Bank obtained the instrument from Stone for $3900. Willard had no knowledge that Helco disputed liability under the instrument. February 12, 2001 Helco, Inc. promises to pay to the order of Astor Corp. the sum of $4900 on March 12, 2001 (maker may elect to extend the due date to March 31, 2001) with interest thereon at the rate of 12% per annum). By: A. J. Help A.J. Help, President Helco, Inc. Re: Computer purchase agreement dated February 12, 2001
negotiable even though the maker has the right to extend the time for payment
A note, otherwise negotiable, containing the phrase, "Payable on May 19, 2022, but if my federal tax refund for 2022 is less than $5000, payment shall be extended to September 1, 2022 is:
negotiable.
A note, otherwise negotiable, containing the phrase: "Payable on January 1, 2050, but if my Uncle Joe dies before this note is due, it shall become payable 10 days after distribution of his estate." is:
negotiable.
Booth writes a check payable to Zoey and delivers it to her. Zoey presents the check to the drawee bank, The Second First State Bank. Second First refuses to pay the check. Can Zoey, as a holder, hold Second First liable on it drawee's contract?
no
Buffy writes a check payable to Muffy and delivers it to her. Muffy presents the check to the drawee, The Prep State Bank. The bank refuses to pay the check. Can Muffy, as a holder, hold the bank liable on its drawee's contract?
no
On June 1, 2015, M & M Machinery makes a promissory note payable to the First National Bank which is payable on June 1, 2017. First indorses it and negotiates it to the Last National Bank on July 3, 2015. Last presents the note for payment to M & M on June 15, 2017. First claims that it was discharged by the late presentment. Is it correct?
no
On June 1, 2015, M & M Machinery makes a promissory note payable to the First National Bank which is payable on June 1, 2017. First indorses it and negotiates it to the Last National Bank on July 3, 2015. Last presents the note for payment to M & M on June 15, 2017. M & M claims that it was discharged by the late presentment. Is it correct?
no
On March 17, 2021 MIke's Pizza makes a promissory note payable to the Pizza Oven Supply Co. (POS) which is payable on March 12, 2022. POS indorses it and negotiates it to the Columbia National Bank on March 21, 2021. Columbia presents the note for payment to Mike's Pizza on May 14, 2022. POS claims that it was discharged by the late presentment. Is it correct?
no
Scarlett O'Hara makes a promissory note payable to Rhett Butler, repayment to be made in installments on the 15th of every month. Rhett sells the note at discount to the Rebel State Bank on the 17th of June. The note has written on it in big letters "Missed paying May installment." Can Rebel State Bank qualify as an HDC?
no
Michelle writes the following promissory note: "I promise to pay Harry Bosch $1000. This note is:
not negotiable since it is not payable to order or to bearer.
A purchaser of a negotiable instrument would least likely be a holder in due course if, at the time of purchase, the instrument is
overdue by three weeks
On March 1st, Danny draws a check on Corner Bank payable to Beth. On March 4th, Danny dies. On March 13th, Beth presents the check for payment. On March 17th, the Corner Bank officially learns of Danny's death. Corner Bank should:
pay Beth
A note otherwise negotiable is non-negotiable if it is:
payable on June 1, 2019, subject to an extension at the option of the maker
