Rigos_Acronyms-Commercial Paper

Question 1

Commercial Paper

Negotiable Instruments Requirements: NUTSS

*UCC Article 3-Commercial Paper

Answer 1

"N"egotiable Words
"U"nconditional Promise to Pay
"T"ime Certain for Payment
"S"um Certain in Money
"S"igned by Maker / Drawer

(c) 2014 Rigos Professional Education - All Rights Reserved

Question 2

Commercial Paper

Holder in Due Course: FINNS

*UCC Article 3-Commercial Paper

Answer 2

"F"or Value
"I"n Good Faith
"N"o Notice of Claim or Defense
"N"egotiation
"S"helter Rule

(c) 2014 Rigos Professional Education - All Rights Reserved

Question 3

Commercial Paper

Personal Defenses: MUUFFO

*UCC Article 3-Commercial Paper

Answer 3

"M"utual Mistake
"U"nauthorized Completion
"U"ncompletion of a Condition Precedent
"F"raud in the Inducement
"F"ailure of Consideration
"O"ther Claims

(c) 2014 Rigos Professional Education - All Rights Reserved

Question 4

Commercial Paper

Real Defenses: FIDDLS FUM

*UCC Article 3-Commercial Paper

Answer 4

"F"raud in the Execution
"I"llegality of Transaction
"D"ischarge in Bankruptcy
"D"uress"
L"ack of Capacity
"S"tatute of Limitations

“F”orgery
“U”nauthorized Signature
“M”aterial Alteration

(c) 2014 Rigos Professional Education - All Rights Reserved

Question 5

Commercial Paper

Transfer of Parties’ Warranties: GANDS

*UCC Article 3-Commercial Paper

Answer 5

"G"ood Title to Instrument
"A"lterations Not Present
"N"o Knowledge of Insolvency
"D"efenses Not Present
"S"ignatures are Genuine and Authorized

(c) 2014 Rigos Professional Education - All Rights Reserved

Question 6

Commercial Paper

Presentment Parties’ Warranties: GAD

*UCC Article 3-Commercial Paper

Answer 6

“G”ood Title to Instrument
“A”lterations Not Present
“D”rawer’s Signature Proper

(c) 2014 Rigos Professional Education - All Rights Reserved