Exam 39: Negotiation and Holder in Due Course

A person is a(n) _____ if she is in possession of an instrument that is payable to bearer or that is made payable to an identified person and she is that identified person.

To be a holder of a negotiable instrument, a person must not have possession of an instrument that is payable to bearer.

Mantra Oil Inc. indorses a check "Pay Habib Coal Corp. only if it delivers 1,000 tons of coal by September 30, 2014." Under Revised Article 3 of the Uniform Commercial Code, this is a _____ indorsement.

Which of the following statements is true of a restrictive indorsement?

A check drawn "Pay to the Order of Shoma Chatterjee" is indorsed "Shoma Chatterjee" by Shoma. Given this information, we can conclude that the type of indorsement is _____.

Which of the following is a partial defense against a holder in due course and a complete defense against a non-holder in due course?

An instrument that is indorsed with a special indorsement can be negotiated only with the indorsement of the person specified.

Which of the following statements is true of a qualified indorsement?

Explain the formal requirements for negotiation of order paper and bearer paper.

Which of the following statements is true of an indorsement?