Exam 25: The Function Creation of Negotiable Instruments

To buy a stuffed cow, Ken executes a check "pay to Laura or bearer" and gives it to Laura, who does not own a stuffed cow. This check is

Fact Pattern 25-1B (Questions B5-B6 apply) 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 25-1B. The instrument that Thalia signed is most likely

With respect to negotiability, an order on an instrument may be addressed to one person or to more than one person, either jointly or alternatively.

Trixie signs a $1,500 note payable, at 4.25 percent interest, on October 1 to Urban Bank and writes on its face that it is "nonnegotiable." This note is

Eden signs a promissory note payable to the order of First Mortgage Company. The note states that it is payable "with interest at the legal rate." This note is

Willy deposits $5,000 with Home State Bank on July 1, 2012. Home State Bank promises to repay Willy the $5,000 plus 3 percent annual interest on July 1, 2017. This is

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

Northwest Energy Corporation signs an instrument that states it is being exe?cuted "as per contract for a purchase of 4,000 barrels of oil dated September 1." This instrument is

To be negotiable, an instrument must be in writing.

Evermore Bank is both the drawer and the drawee with regard to a draft issued to Fernando. The draft is

InterComp normally sells $50,000 worth of software to Power Source, a retail elec?tronics store, each summer on terms requiring payment in sixty days. One year, InterComp wants cash, but Power Source wants the usual sixty days. To meet both needs, the parties can arrange

To borrow money to finance the start-up of his business, Rollo executes an instrument in favor of Security Bank. For the instru?ment to be negotiable, the signature must be

An extension clause allows a payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a certain event occurs.

With respect to negotiability, the location of a signature on a document is important.

Fact Pattern 25-1B (Questions B5-B6 apply) 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 25-1B. With respect to this instrument, Union Bank is

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

Merry draws a check payable to "Cash" and presents it to National Bank for payment. This instrument is

On April 1 Richard arranges to buy a sixteen-speed bike from his neighbor Phil for $500. Phil agrees to deliver the bike on May 1. Richard writes a draft for $500 payable to Phil on May 1. In this situation, the draft is

Sarah has a checking account at Secure Bank. Sarah buys her roommate Sophie's two tickets to a Broadway musical for $200. Sarah writes Sophie a check for the tickets. In this situation, Secure Bank is

Efron borrows money to pay his tuition and signs a note payable to First Citizens Bank. The bank assigns the note to Guaranty Bank. The assignment