Exam 23: Negotiable Instruments

Fiona writes a check "pay to the order of Gerri" drawn on Fiona's account at Hearthstone Bank. Gerri presents the check for payment to Hearthstone,which accepts it. Primarily liable on the check is

Lenora signs a note "payable to the order of Medical Account Collection Agency." Unless Lenora has a valid defense against payment,Lenora's liability on this note is

Fanny signs a note "payable to the order of Guaranty Bank." Guaranty indorses the note in blank and negotiates it to Haji,who sells it to Iona. Liability associated with the transfer of the note from Haji to Iona is

To be negotiable,an instrument must be payable in money.

Warranty liability arises only from a transferor's signature.

Gwen deposits $5,000 with Home State Bank on July 1,2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1,2021. Home State Bank issued to Gwen

Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.

Lindsey,an accountant for Madison & Monroe,acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey acquires the status of an HDC when she

A check is a time instrument because it is payable in due time.

Lewis makes a note payable to Milly. She indorses the back of the note and negotiates it to Negotiable Investments,Inc. Primarily liable on the note is

Thalia signs an instrument unconditionally promising to pay to "Union Bank" $7500 with interest in installments with the final payment due June 1,2017. -Refer to Fact Pattern 23-3. The instrument that Thalia signed is most likely

Erin draws a check payable to "Foodland" to buy groceries. -Refer to Fact Pattern 23-1. With respect to Erin's check,Foodland is

Pedro signs an instrument that states it is being executed "as per a contract for the sale of a case of apples dated May 1." This instrument is

Raul wants to transfer a check to Schmidt. The check is defective if it

Discharge in bankruptcy is no defense on any instrument regardless of the status of the holder.

A symbol can serve as a valid signature.

Daria writes a check to Education Loan Management,Inc.,that is drawn on Daria's account at First Federal Bank. If the bank does not accept the check,liability for its amount is on

A negotiable instrument can only be transferred by negotiation.

With respect to negotiability,a mere reference to another writing or record makes a promise conditional.

O'Malley negotiates an order instrument to Phil by