Exam 20: Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

How are negotiable instruments negotiated?

Gambito wants to deposit his entire paycheck in his checking account by mailing it to the bank. To provide the best safeguard, he should use a

Johnson makes out a promissory note payable to Edwards. This first transfer of the note to Edwards is called

If the holder of a negotiable instrument alters it in any significant way, the obligation of any affected parties is ____________________.

If a negotiable instrument is not paid on time and a lawsuit to collect the amount of the instrument is not brought within the time set by a state's statute of limitations, the instrument is ____________________.

An order instrument is negotiated by

A qualified indorsement limits the ____________________ of the indorser.

The party who becomes the first indorser of a note is generally the

____________________ is the transfer of an instrument in such a way that the transferee becomes a holder.

Explain the difference between a transfer of a person's rights by assignment under the law of contracts, and a transfer of a negotiable instrument by negotiation under the UCC.

____________________ of a promissory note back to the maker will cancel it.

An indorsement

A(n) ____________________ instrument is negotiated by indorsement and delivery.

One who takes possession of an instrument after proper negotiation is a(n)

No ____________________ is required to transfer ownership of a bearer instrument.

A(n) ____________________ is the signature of the indorser, which usually appears on the back of the instrument.

"Pay to the order of Renee DiMarco (signed) J. Marx" is a(n)

When the transfer of a negotiable instrument is made either by assignment or by negotiation, the third party becomes a holder.

The circulation of a negotiable instrument begins when the maker or the drawer issues an instrument to the ____________________.

"For deposit only, Robert Marin" is a