8:31:11 - If “order” or “bearer” is not there NON...

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Test of Negotiability - security of the holder What effect will the provision or wording have on the security of the holder o i.e. his or her ability to obtain or receive payment o Holder     : a person in possession of a negotiable instrument; that is  drawn, issued or indorsed to a person, or to that person’s order or  to bearer or in blank Negotiable- not a check because it is a time instrument Doug is a holder, because is in possession Sam (issues)   Doug   Bill Blank indorsement- just writing the name on the back of the  a note or draft If Doug Indorsed and voluntarily delivered to Phil, then Phil  becomes a holder If someone steals it from Phil, then the thief is also a holder   because it was indorsed in blank  The thief voluntarily delivers it to Suzy, also a holder  now ONLY need the “date is issue” unless it is payable 10 days after date
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Unformatted text preview: If “order” or “bearer” is not there- NON NEGOTIABLE When it is non negotiable none of the other terminology applies except (obligor, obliges, assignors and assignees) NOTES- maker, payee, promisor or obligor DRAFT- drawer, drawee • The only thing that can be presented for acceptance is a time draft Acceleration 1. By the maker- “payable on or before 11/18/11” 2. By the holder- acceleration is contingent upon default (missing a payment)- can ask for an acceleration to pay the whole amount now Bearer instruments: 8, 23, 32, 33, 45 Order Instruments: 15, 41, 44 Non-negotiable: 6, 11, 12, 14, 17, 18, 30, 31, 34, 35, 36, 20 Time instruments: 9, 10, 11, 16, 23, 24, 25, 29, 37, 42, 43, 46, 47 Demand instruments: 13, 26, 40...
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8:31:11 - If “order” or “bearer” is not there NON...

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