Exam 25: B: Transferability and Holder in Due Course

Florencia,who is not a GigaBank customer,attempts to cash a check drawn on the bank.The check is considered dishonored if GigaBank

Negotiation is a transfer in such form that the transferee becomes a holder.

The effect of a conditional indorsement on the back of an instrument is the same as the effect of conditional language that appears on its face.

An indorser who does not wish to be liable on an instrument can use a qualified indorsement.

Jill,in good faith and for value,gets from Kit a check "payable to the order of bearer." Jill does not know that Kit stole the check.Jill is

A special indorsement does not specify a particular indorsee.

Tiffany transfers a draft by signing it and delivering it to Uma.Tiffany is

Fact Pattern 25-A1 Rollo obtains a check payable to his order from Simone.Rollo signs the back and gives the check to Trey.Trey writes "Pay to Trey" above Rollo's signature. -Refer to Fact Pattern 25-A1.By writing "Pay to Trey" above Rollo's signature,Trey

Under the UCC,a transfer of rights under a contract is a negotiation.

Lauren transfers an instrument to Miguel in a form and by a means that makes Miguel a "holder." This is

Fact Pattern 25-A1 Rollo obtains a check payable to his order from Simone.Rollo signs the back and gives the check to Trey.Trey writes "Pay to Trey" above Rollo's signature. -Refer to Fact Pattern 25-A1.When Trey writes "Pay to Trey" above Rollo's signature,Rollo's signature becomes

Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.

An instrument payable to two persons jointly requires the indorsement of only one of the payees for negotiation.

A person who acquires a check stamped "insufficient funds" is put on no?tice and thereby acquires HDC status.

Blythe,an accountant for Credits & Debits,acquires a negotiable instru?ment from Eton by promis?ing to pay its face value in thirty days.Blythe ac?quires the status of an HDC when she

For an ordinary holder to become an HDC,the holder must have acted honestly in the process of acquiring the instrument.

An executory promise does not constitute sufficient value to make the promisor a holder.

Jen makes a gift of a check to Kilroy who takes it in good faith and without notice of any claim,defense,or defect.With respect to this check,Kilroy is

Dora receives a check from Eagle Corporation.Dora in?dorses the check to First National Bank by writing "pay to First Nat'l Bank only" and signing her name.This is

Eppie gives a check to Fund Investments to buy 100 shares of stock in GR8 Tech Corporation for Eppie.The price of the shares is constantly fluctuating.Fund Investments asks Eppie to leave the amount of the check blank and allow it to fill in the price when making the purchase.Eppie agrees.Fund Investments buys the stock when the price is $4,000,but fills in the check for $5,000.The check is negotiated as payment for a $5,000 debt to Hasty Accounting Services,which takes the check in good faith and without no?tice of Fund Investments's act.Hasty later learns that Fund Investments was not author?ized to fill in the check for $1,000 over the price.Is Hasty an HDC? If so,for how much?