Exam 25: A: Transferability and Holder in Due Course

Lexy obtains a check payable to her order from Maven.To negotiate this order instrument to Nicole requires

Fact Pattern 25-1B Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse." -Refer to Fact Pattern 25-1B.Belle's signature and the notation "without recourse" constitute

Reel CGI Animé Company issues a promissory note as a demand instrument with a due date of October 5.Syncopated Loan Company accepts the note.Syncopated has notice that the note is overdue if the firm takes the note

A bearer instrument is negotiated by delivery with any necessary indorsements.

A payee whose name is misspelled on an instrument cannot indorse the instrument.

If an instrument is acquired as part of a corporate purchase of assets,the holder will have the rights of an HDC.

Fact Pattern 25-1B Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse." -Refer to Fact Pattern 25-1B.After Belle signs the back and adds the notation "without recourse," further negotiation of the check

Any irregularity on the face of an instrument that creates an ambiguity as to the party to pay will bar HDC status.

A purchaser cannot become an HDC of an instrument so incomplete that an element of negotiability is lacking.

Todd indorses a check,"Pay to Interstate Trucking if they deliver the lumber by May 1,2012." This is

Demi possesses a check that is "payable to bearer." Esther steals the check and delivers it to Fern.All rights to the check are

Tyrone transfers a note by signing it and delivering it to Uri.Tyrone is

An HDC takes a negotiable instrument free of most defenses and claims that could be asserted against its transferor.

A holder takes an instrument for value if he or she accepts the instru?ment as payment for an antecedent debt.

Fact Pattern 25-1B Belle obtains a check payable to her order from Charmayne.Belle signs the back and adds the notation "without recourse." -Refer to Fact Pattern 25-1B.By writing "without recourse" with her signature,Belle

Parkdale Roofing Company receives a check from Quik Mart for fixing its roof,and indorses the check to Repair Supplies,Inc.(RSI).Stef,RSI's owner,gives the check to Tiny as a gift.In this situation,the party who is not an HDC of the check but who acquires HDC rights under the shelter principle is

An instrument is not defective because it has been dis?honored.

A restrictive indorsement prohibits further negotiation of an instrument.

Dru signs a check payable to Excel Services,Inc. ,and gives it to Excel,leaving the amount blank but authorizing Excel to fill it in for $1,000.Excel fills in $1,500 and negotiates the check to Friendly Credit Corporation,an HDC.Friendly Credit can enforce the check for

Pola wants to transfer a check to Quin.The check is defective if it