Exam 23: Holder in Due Course and Transferability

The transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder is referred to as a(n)________.

Which order paper when indorsed becomes a bearer paper?

Indorsements are required to negotiate bearer papers.

A holder who takes an instrument with notice of its dishonor cannot qualify as a holder in due course (HD C).

An instrument containing a qualified indorsement can be further negotiated.

An instrument that is refused payment when presented for payment is called a ________.

If an instrument is payable to multiple persons using the word "and," then the instrument ________.

Which of the following is true of a bearer paper?

Under which of the following Uniform Commercial Code (UCC)requirements is a holder considered a "holder in due course," given that the holder performs the agreed-upon promise in a negotiable instrument?

Negotiable instruments are used as a substitute for money.

An indorsement whereby the indorser promises to pay the holder or any subsequent indorser the amount of the instrument if the maker,drawer,or acceptor defaults is referred to as a(n)________.

A person who is in possession of a negotiable instrument that is drawn,issued,or indorsed to him or to his order,or to bearer,or in blank is referred to as a(n)________.

The holder of a negotiable instrument has the same rights as the holder of an ordinary nonnegotiable contract.

What is the difference between a holder and holder in due course?

Which of the following indorsements can be negotiated just by delivery?

Explain the transfer of nonnegotiable contracts by assignment.

Which of the following is true of an assignment?

A qualified indorsement protects subsequent indorsers from liability.

If a person promises to perform but has not yet done so,no value has been given,and that person is not an HDC.

A special indorsement is negotiable by indorsement and delivery.