Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 15

Holder. Germanie Fequiere signed a note payable to BNC Mortgage. As security for the note, Fequiere signed a mortgage on certain real property. BNC indorsed the note in blank. Later, Chase Home Finance, LLC, became a holder in due course of the note and the holder of the mortgage. When Fequiere failed to make payments on the note, Chase sought to foreclose on the property. Fequiere argued that the mortgage had not been properly transferred to Chase. If that is true, can Chase obtain payment on the note Why or why not