R-7 Flashcards
1
Q
What is holder in due course?
A
A holder in due course is a person who takes a negotiable instrument for value, in good faith and without notice of any defenses on or claims to the instrument.
2
Q
What does article 3 governs?
A
commercial paper or negotiable instruments
3
Q
What does article 7 governs?
A
documents of title (bill of lading and warehouse receipts)
4
Q
What are types of endorsements?
A
See R-7 pg 15
5
Q
What is real defenses against HDC?
A
Fraud in execution, Forgery, insanity, alteration, infancy, illegal, duress, discharge in bankruptcy, suretyship, statue of limitations.
6
Q
What is the priority in collateral?
A
R-7 pg 34
7
Q
What is the priority in bankruptcy?
A
Pg 56- 58
