Article 3 UCC-negotiable instruments Flashcards
1
Q
Secondary liability of instrument
A
drawer of a draft
2
Q
recourse if Primary party refuses to pay
A
non-banks have 30 days to notify secondary parties after primary party refuses
3
Q
shelter principle
A
rights of holder in due course if you can trace note back to holder in due course
4
Q
special qualified endorsement-without recourse
A
makes order paper of bearer paper must be enorsed before further negotiated
5
Q
HDC time limit to present check
A
30 days
6
Q
valid defense against holder in due course-universal defenses
A
infancy, forgery, fraud in execution
