Exam 16: Transferability and Holder in Due Course

The good faith requirement applies to both the holder and the transferor.

Negotiating order instruments requires indorsement.

Ryan negotiates an order instrument to Selina by​

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​

Plumbing & Pipes Supply Company issues a promissory note as a demand instrument with a due date of October 5. QuikPay Loan Company accepts the note. QuikPay has notice that the note is overdue if the firm takes the note​

Len makes a gift of a check to Millie who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Millie is​

Rod negotiates a bearer instrument to Shauna by​

Avril receives a payroll check from Business Solutions, Inc., and indorses it by signing her name on the back of the check. This is​

Fact Pattern 16-1 Nina obtains a check payable to her order from Oran. Nina signs the back and gives the check to Patricia. Patricia writes "Pay to Patricia" above Nina's signature. -Refer to Fact Pattern 16-1.When Patricia writes "Pay to Patricia" above Nina's signature, the check becomes​

Beth, an accountant for Credits & Debits, acquires a negotiable instrument from Ellen by promising to pay its face value in thirty days. Beth acquires the status of an HDC when she​

To pay for investment advice from Buffet & Carraldo P.A., Doris signs a check payable to "Buffet or Carraldo." A proper indorsement of the check is​

An instrument is dishonored when the party to whom the instrument is presented refuses to pay it.