REG - 12

Question 1

Do checks have a maker?

Answer 1

No. There are no makers of checks, only drawers of checks. A note has a maker.

Question 2

Who are the primary parties in presentment?

Answer 2

Maker and Drawee of a Check

A Drawee of a time draft before acceptance is not a primary party

Question 3

Who are secondary parties in presentment?

Answer 3

Payee
Endorsers
Drawers of a draft or check
Payee

Question 4

Proper Presentment

Answer 4

Time for Presentment: due date or on demand

Question 5

Time for presentment for checks

Answer 5

30 days to attach liability of endorsers and to attach liability of drawer (this limitation is a problem only if drawee bank fails)

6 month presumption of good faith for banks cashing checks

Question 6

Dishonor - Notice Time Requirements

Answer 6

30 days for regular folks on checks

Banks Under Article 4 - midnight of the next banking day is their deadline for notification of dishonor

Question 7

Draft

Answer 7

A 3 party instrument where a drawer orders a drawee to pay a fixed amount in money to the payee

Question 8

Universal Defenses

Answer 8

infancy, forgery, and fraud in the execution

Question 9

Can a personal defense be asserted against an HDC?

Answer 9

No. Only universal defenses may be asserted against an HDC

Question 10

What are real defenses?

Answer 10

Those that can be asserted universally. That is, they may be asserted against any holder of a negotiable instrument.

Question 11

When a transfer is made without a signature, to whom does transfer warranty apply?

Answer 11

Only to the immediate transferee, and there is no contract signature liability