How to become a holder Flashcards
1
Q
ways to become a holder
A
issue
negotiate
2
Q
issuance
A
maker/drawer issues to holder for purposes of giving rights in the instrument
3
Q
negotiation
A
transfer, voluntary or not, by someone NOT the maker/drawer
4
Q
how to negotiate bearer paper
A
delivery
5
Q
how to negotiate order paper
A
delivery and proper indorsement
6
Q
what if they put restricting language such as Pay nate only?
A
no effect
7
Q
what if it names an identified person as the indorsee?
A
special indorsement
that person must sign for further negotiations
if you special indorse bearer paper = order
8
Q
what if there is no naming of a specific indorsee?
A
blank indorsement
created bearer paper
9
Q
what if i put without recourse on it?
A
qualified indorsement
limits indorsee liability
