Exam 26: Form and Content

Under Revised Article 3, a check which meets all the requirements of being a negotiable instrument except that it is not payable to bearer or order is nevertheless a negotiable instrument.

Which of the following will destroy negotiability?

If Sam writes a check drawn on his account at First Bank to Towers University to pay his tuition:

A definite time required for negotiability would NOT be satisfied in which instance?

A draft involves only two parties: a drawer and a payee.

An incomplete instrument is non-negotiable. However, when it is completed, it may become negotiable.

A medium of exchange adopted or authorized by a sovereign government as part of its currency is known in the law of negotiable instruments as:

An instrument paying a fixed amount in Japanese yen is not negotiable; the instrument must be payable in money authorized or adopted by the U.S. as part of its currency.

The Code section which sets forth the requirements that must be met for an instrument to be negotiable is:

Which of the following would not be considered "money" within the meaning of the Code?

Michael is the maker of a note which states that it will be due on March 10, 2015. The note contains a clause stating that "payment will be limited to the proceeds of the sale of the contents of freight car No. 1234." Is the note negotiable? Why or why not? Explain.

Words of negotiability are:

A promise or order is payable at a definite time if it is payable:

A substitute check created under Check 21 is the legal equivalent of the original check and contains all the information contained on the original check.

Which of the following would be an unconditional promise or order to pay?

Amanda goes to American Bank where she uses $2,000 of her savings to purchase a six-month certificate of deposit. In this case:

Handwritten words supersede inconsistent typewritten words contained in negotiable instruments.

Carol buys some items at Friendly Drugstore and writes a check to the store on her account at First Bank. Who is the drawee?

A cashier's check is drawn by a bank upon itself to the order of a named payee.

The drawee is the individual who signs a check and promises to pay.