Exam 24: The Function Creation of Negotiable Instruments

To finance the purchase of a house from Tuna, Uri signs an instrument promising to pay to "Verity Mortgage Service" $160,000 with interest in installments with the final payment due July 10, 2040. To be negotiable, this instrument must include the signature of

Rita owes $6,000 in unpaid taxes. In the sand of Seaside Beach, she exe?cutes an instrument for that amount that otherwise meets the re?quire?ments for negotiability. This instrument is likely

An instrument is nonnegotiable unless the word "negotiable" is printed on it.

Maria signs an instrument payable to the order of National Loans, Inc., "on or before" June 15. This instrument is

A trade name can serve as a valid signature.

Fact Pattern 24-2A Quantity Sales Corporation and Resources Purchasing Company enter a contract for a sale of processed silver. Quantity Sales draws a draft unconditionally ordering Resources Purchasing to pay $50,000 to Quantity Sales's order in sixty days. Resources Purchasing signs and dates the draft. -Refer to Fact Pattern 24-2A. On this instrument, Quantity Sales is

For an instrument to be negotiable, it must be in writing.

An instrument payable "with interest" must specify a particular rate to be negotiable.

An acceptor is a drawee who has agreed to pay an instrument when it is presented later for payment.

To be negotiable, an instrument must be written on high-quality, letter- or le?gal-size paper.

A promissory note is negotiable even if it does not state that it is payable on demand or at a definite time.

An order stating "I wish you would pay" is sufficient to create a negotia?ble instrument.

Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she exe?cutes an instrument for $5,000 that otherwise meets the re?quire?ments for negotiability. This instrument is most likely

An extension clause on an instrument is the reverse of an acceleration clause.

A promissory note is not negotiable if reference must be made to foreign exchange rates at the time payment is due.

A notation on an instrument that it is "negotiable" is sufficient to render it negotiable.

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

An instrument that promises to pay "in gold" can be negotiable.

Kevin, the owner of Livestock Ranch Corporation, signs an instrument that includes the phrase "payment for this note will be made from the pro?ceeds of next year's stock sale." This instrument is

A check "payable to the order of bearer" is neither an order instrument nor a bearer instrument.