Presentment, payment of negotiable instruments

Question 1

Define “presentment warranty.”

Answer 1

The person who presents instrument is authorized to receive payment.

Question 2

Define “dishonor.”

Answer 2

The primary party refuses to pay the instrument

Question 3

When must a notice of dishonor be given?

Answer 3

1. )It must be given within 30 days of dishonor or notice of dishonor;
2. )For banks, it must be given by midnight of the next banking day

Question 4

Define “presentment.”

Answer 4

Negotiable instrument presented for payment. ID can be required

Question 5

List the warranties given by transferors of negotiable instruments

Answer 5

1. )Transferor is entitled to enforce the instrument.
2. )All signatures are genuine or authorized.
3. )Instrument has not been altered.
4. )Instrument is not subject to defenses.
5. )Transferor has no knowledge of any insolvency proceeding