Exam 20: Creation and Transfer of Negotiable Instruments

For ________ to be negotiated,there must be indorsement and delivery.

Negotiation of which type(s)of instrument requires indorsement?

Regarding a certificate of deposit:

Some forms of negotiable instruments extend credit from one party to another.

Which of the following is order paper?

A check is an order to pay.

Another term for negotiable instrument is ________.

"Pay to Kathy Young" is a restrictive indorsement because it confines and limits payment to Kathy Young.

A writing must be on paper in order to qualify as a negotiable instrument.

If an instrument provides for interest but the amount of interest cannot be determined from the description,interest is payable at the judgment rate in effect at the place of payment of the instrument.

Alice Johnson issued a note payable over 24 equal monthly installments.The note contained a provision making the entire balance due immediately if Alice defaulted on two consecutive installments.The note contained:

For the drawee to be liable on a draft,the drawee must accept the drawer's written order to pay it.

All negotiable instruments must be payable to order or to bearer.

Which of the following is a restrictive indorsement?

Negotiable instruments may have:

In terms of an order to pay a draft or a check,the language of the order may be general,and need not contain the word "pay."

In a check transaction,the party who has a checking account and writes the check is the ________,the financial institution upon which the check is written is the ________,and the party to whom the check is written is the ________.

What is required to further negotiate an instrument when the payee or indorsee's name is misspelled?

A(n)________ is the transfer of rights under a contract.

If an indorsement names a payee,this person is called the indorsee.