Exam 28: Transfers of Negotiable Instruments and Warranties of Parties

The situation in which an individual impersonates the holder of a savings account and, by presenting a forged withdrawal slip to the savings bank, receives from the bank a check payable to the bank's customer, is covered by the:

Order paper is negotiated by the indorsement of the holder only.

An ordinary holder of an instrument has immunity from certain defenses that might have been asserted against the transferor.

A transferor may be able to set aside a negotiation obtained by fraud or duress unless:

Bearer paper may only be negotiated by the actual transfer of possession of the instrument.

In the case of a check, when the impostor rule applies:

The warranty liability of a qualified indorser is the same as that of an unqualified indorser.

Industries Inc., drew a check payable to Gloria Schell and Pippen Tallit in the sum of $20,000. For a proper negotiation, the check:

A payee whose name is misspelled may indorse with the wrong name, the correct name, or both.

If an instrument is payable to alternative payees, it may be indorsed and delivered by either of them.

Coppersmith executed and delivered negotiable notes to the payee, Charlene. The payee indorsed the notes to Whitehurst but did not deliver them. Instead, she kept the notes in her possession because she wanted to collect the interest during her life and wanted the indorsee to have the notes on her death. After Charlene's death, her executor, Cartwright, found the notes. Both Cartwright and Whitehurst sought to enforce the notes against Coppersmith. Who was entitled to do so?

When the name of the payee is spelled incorrectly, the payee:

When a negotiable instrument is negotiated by delivery without indorsement, the warranty liability of the transferor runs:

An instrument can be delivered by constructive delivery, in which the transferee has exclusive access to the instrument.

Under the UCC, a negotiation is not effective when it is made by a minor or any other person lacking capacity.

If a lost instrument is order paper, the finder __________.

A blank indorsement turns a(n) __________instrument into a(n) __________ instrument.

A blank indorsement indicates the person to whom the instrument is to be paid-that is, the transferee.

The transferring of an instrument in such a way as to make the transferee the holder of the paper is termed:

A __________ indorsement consists of the signature of the indorser and words specifying the person to whom the indorser makes the instrument payable.