Negotiation Flashcards
A Blank endorsement
does not specify any endorsee
A Qualified endorsement
Endorser disclaims liability to pay the holder or any subsequent endorser if it is later dishonored.
An example of qualified endorsement
when endorser puts into words “without recourse” on back of instrument
Special endorsement
endorser indicates a specific person who needs to endorse it.
An example of a Restrictive endorsement
uses the words “For Deposit Only”
Difference between Negotiating bearer paper vs Negotiating order paper
Bearer paper = Delivery only
Order paper = Delivery and Endorsement by transferor
Delivery = holder get possession of instrument
What are the requirements of Holder in Due course?
Holder of negotiable note
Gave value
Took in good faith
had no notice of breach or other problems
