Exam 27: Kinds of Negotiable Instruments and Negotiability

The requirement of a sum certain in money is fulfilled even though the interest rate changes at maturity.

When the drawee of a draft has indicated by writing or record a willingness to pay the amount specified in the draft the drawee is called a(n):

If an instrument is negotiable,it is governed by Article 4 of the UCC.

George was the maker of a written promissory note that stated that $500 would be paid on the sale of George's automobile.George initialed the note instead of writing his full name.The promissory note stated that it would be payable six months from the date.The promissory note was not dated.You now have come into possession of this note.Is this note negotiable? Discuss the elements of negotiability and whether each one has been met.

Revised UCC Article 3 refers to drawers,indorsers,and accommodation parties as "secondary obligors."

If a check is made payable to Paolo,and Paolo signs on the back of the check,Paolo is:

The drawer is the person on whom the order to pay a draft is made.

Article 3 of the UCC establishes a four year statute of limitations for most actions involving negotiable instruments.

An unconditional written promise made by one person to another,signed by the maker,that promises to pay on demand a specific sum of money to the bearer is a:

A payee has no rights in an instrument until:

Negotiability is the characteristic that distinguishes commercial paper and instruments from ordinary contracts.

Ifinstrument is negotiable,it can be:

The party who writes or creates a promissory note is called the:

The signature on an instrument must appear at the lower right-hand corner of the face of the instrument.

Commercial paper are transferable,written,signed promises to pay a specified sum of money.

Article 3 of the UCC establishes a __________-year statute of limitations for most actions involving negotiable instruments.

To be negotiable,an instrument must include all of the following,except:

Which of the following terms would make an instrument nonnegotiable?

A check that is made out to "Cash" and signed by the writer is

The bank is the drawee on a check and has no liability until it has accepted the instrument.