transferring the instrument Flashcards
when does transfer occur
issuance
delivery by NOT maker/drawer for purpose of giving you the right to enforce
shelter rule
when instrument transferred, the rights follow the instrument
HIDC transfers HIDC rights to transferee
shelter rule exception
transferee engaged in fraud/illegal affecting the instrument cannot be HIDC
what if someone is merely aware of the fraud?
may still be HIDC
what can i do as transferee if I pay value and transferor does not indorse?
force them to indorse
what is the remedy when a thief gets paid and disappears?
transfer warranties
who makes a transfer warranty?
anyone who transfers for consideration
if I dont indorse it, who an I giving TW to?
immediate transferee
what if i indorse it?
TW to all subsequent transferees
what are the transfer warranties
i am entitled to enforce
all signatures are authentic
no alteration
no claims can be asserted
no knowledge of insolvency
damages to breach of TW
amt of instrument + expenses + loss of interest
can you disclaim a TW?
yes unless it is a check
