Exam 27: Kinds of Negotiable Instruments and Negotiability

Antedating an instrument affects an instrument's negotiability.

Bruce agrees to buy Joe's ranch.They draw up a note, under which Bruce is to pay Joe in three installments, each payable on a specified date.Joe has concerns about Bruce's ability to pay on time, so he insists that the note include an acceleration clause.Such a clause would allow Joe to:​

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

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

A person who becomes a party to an instrument to add strength to the instrument for the benefit of another party to the instrument is called a:

Any of the following constitutes a signature as an element of negotiability, except:​

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

Commercial paper facilitates the transfer of funds and payment.

If an instrument is nonnegotiable, the rights of the parties are governed by the general principles of contract law.

A check is an order by a bank itself to pay a sum of money to the order of another party.

An acceptor is a drawer who has accepted the liability of paying the amount of money specified in a draft.​

A negotiable instrument may be partly printed and partly typewritten.

An accommodation party is a third person who signs an instrument to lend credit to another party to the paper.

The maker is the person who writes out and creates a promissory note.

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:

Article 2 of the Uniform Commercial Code governs negotiable instruments.

A nonnegotiable instrument's terms are not enforceable.

A payee has no rights in an instrument until:​

A certificate of deposit is a written promise made and signed by the maker to pay a sum certain in money to the holder of the instrument.

Conville signed a note as an officer of the Hughesville Manufacturing Corporation, but she did not name the corporation in the note or indicate that she was acting as an officer for it.Later, she was sued by the Grange National Bank, the holder of the note.She raised the defense that the corporation was liable on the note.Who was liable?​