Chapter 25 - Chapter 25 1 Negotiation a Transfer by...

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Chapter 25 1. Negotiation a. Transfer by negotiation creates a holder, who at the very least receives the rights of a previous possessor AND b. A holder in due course (HDC) acquires more rights in the instrument than the previous possessor. This means defenses that can be raised against the transferor may or may not be able to be raised against the transferee 2. Two ways to negotiate a. Negotiating order instrument – endorsement and delivery required. b. Negotiating bearer instruments – delivery only 3. Endorsements a. Allonge b. Signature with or without additional words or comments i. Blank endorsements ii. Special endorsements – name the endorsee (specific person) iii. Qualified endorsements iv. Restrictive endorsements 4. Miscellaneous endorsement problems a. Misspelled names. Endorsement should generally be identical to name on instrument i. Misspelled name OK b. Instruments payable to legal entities c. Alternative or joint payees i. In the alternative – either may endorse ii.
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  • Spring '10
  • Roberson
  • Negotiable instrument, holder, Endorsement, Bearer instrument, a. Holder

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