Requirements of Negotiability Flashcards
1
Q
All negotiable instruments (except checks)
A
are required to be payable to order or bearer
2
Q
What are the requirements of negotiability
A
Written Signed Unconditional promise to pay a fixed amount of money Payable at a definite time Payable to bearer
3
Q
Checks are usually written
A
pay to John Smith
4
Q
Revised Article 3 of UCC allows
A
a negotiable instrument to be payable in any medium of exchange of US or foreign Government
5
Q
A conditional promise on a note
A
destroys negotiability
6
Q
Under Revised Article 3 of UCC interest rate
A
are allowed to be variable or fluctuate.
7
Q
The Sum certain rule
A
allows interest rates to vary based on things like prime rate of interest at a bank
8
Q
Under Revised Article 3 of UCC payments on negotiable instruments
A
may come from a particular source or fund.
The maker or drawer does not have to be personally liable
