Exam 32: Negotiation and Holder in Due Course

If a negotiable instrument is payable on demand,it is overdue:

Which of the following indorsements is a blank indorsement?

The negotiation of an instrument made in breach of duty is subject to ________ before the instrument has been negotiated to a transferee who can qualify as a holder in due course.

________ is defined to mean "a signature (other than that of a maker,drawer or acceptor)that alone or accompanied by other words,is made on an instrument for purpose of (i)negotiating the instrument,(ii)restricting payment of the instrument,or (iii)incurring indorser's liability on the instrument."

A ________ indorsement contains the signature of the indorser along with words indicating to whom,or to whose order,the instrument is payable.

With limited exceptions,a ________ indorsement is not an effective indorsement and prevents a person from becoming a holder.

What are the three significant effects resulting from the indorsement of a negotiable instrument?

Under the most modern revision to Article 3,a depositary bank cannot become a holder of a check that is deposited by a customer without an indorsement.

In general,the alteration of a completed negotiable instrument:

A check becomes overdue:

A ________ indorsement is one where the indorser disclaims her liability to make the instrument good if the maker or drawer defaults on it.

Value is identical to simple consideration.

________ indorsements indicate that they are effective only if the payee satisfies a certain situation.

When a customer deposits a check to her account without an indorsement,the bank:

Which of the following is order paper?

Jack Roberts indorsed his paycheck "For Deposit to My Account No.4976463 at National Bank." In the meantime,he loses the check and Mary Green finds it.If Green tries to cash the check at a check-cashing service and it gives her the money,what is the result?

A ________ is a claim of the person obligated on the instrument against the original payee of the instrument.

An individual must be acting in good faith in order to become a holder in due course of a negotiable instrument.

In the context of overdue instruments,if a due date for the principal has been accelerated:

Indorsements that state a condition to the right of the indorsee to receive payment do not affect the right of the indorsee to enforce the instrument.