Show me the Money!
A written promise or order to pay.
Negotiable Instrument
A check that is more than 6 months old
Stale Check
Who is primarily liable on a note?
Maker
HDC stands for what?
Holder in Due Course
A blank endorsement turns order paper into?
Bearer paper
Name 2 types of negotiable instruments
Checks, promissory notes, drafts
A verbal stop-payment is valid for how long?
14 days
Who is primarily liable on a check?
Drawer
How many requirements are there for HDC status?
3
An indorsement that limits how an instrument can be used is a?
Restrictive indorsement
How many requirements must be met for negotiability?
Six
On a forged drawer's signature - who eats the loss?
Bank
Who signs a promissory note?
HDC is protected from personal defenses? True/False
True
An indorsement that names a new payee
Special indorsement
What is the maximum time a check is normally considered valid?
6 months
A forgery reported after 30+ days - who eats the loss?
Customer
A Drawer writes the check. An indorser does what?
Is breach of contract a real or personal defense?
Personal
Signing a note to back up someone else's debt is called?
Accommodation liability
An instrument is missing a date, is it still considered negotiable?
Yes
Can a bank pay a postdated check early?
Yes unless told not to.
What words make an indorsement "qualified"?
Without recourse
Is forgery a real or personal defense
Real
When liability on an instrument is legally ended
Discharge