Exam 24: A: The Function Creation of Negotiable Instruments

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

Olena signs a promissory note payable to the order of Payday Loan Company.The note states that it is payable "with interest at the legal rate." This note is

An extension clause allows the date of maturity of an instrument to be extended into the future.

A mere acknowledgment of a debt is not sufficient to create a ne?gotiable instrument.

Fact Pattern 24-2B Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1,2013. -Refer to Fact Pattern 24-2B.With respect to this instrument,Sunny States Bank is

Beck draws a check payable to "County Farm Supply" to buy a quantity of fertilizer to deposit in Beck's field.This check is

To be negotiable,an instrument must be signed in the lower right-hand corner.

An order instrument must identify the payee with certainty.

A conditional promise to pay is not a negotiable instrument.

Donna gets her paycheck from Erstwhile Financial Services,Inc. ,her em?ployer,and attempts to deposit it in her account at First National Bank.Grey,the bank's teller,notices that on the check the amount stated in words is different from the amount stated in numerals.Which amount can the bank lawfully credit to Donna's account?

To be negotiable,an instrument must be payable on demand or at a definite time.

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

Rye signs a $1,000 note payable,at 6 percent interest,on May 1 to Suburban Bank and writes on its face that it is "nonnegotiable." This note is

Fact Pattern 24-2B Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1,2013. -Refer to Fact Pattern 24-2B.The instrument that Ewa signed is most likely

On behalf of Equity Capital,Inc. ,Flip signs an instrument promis?ing to pay $5,000 in gold to Growth Investments,Inc. ,on May 15.This in?strument is

A sight draft is payable on sight.

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

EZ Credit Company signs an instrument payable to the order of Fraser that states,"The maker of this note at the date of maturity,May 1,2013,can extend the time of pay?ment,but for no more than a rea?sonable time." This instrument is

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

Julie signs a check payable to the order of Kwik Mart Stores,Inc. ,that does not include a date.This check is