R-7

Question 1

What is holder in due course?

Answer 1

A holder in due course is a person who takes a negotiable instrument for value, in good faith and without notice of any defenses on or claims to the instrument.

Question 2

What does article 3 governs?

Answer 2

commercial paper or negotiable instruments

Question 3

What does article 7 governs?

Answer 3

documents of title (bill of lading and warehouse receipts)

Question 4

What are types of endorsements?

Answer 4

See R-7 pg 15

Question 5

What is real defenses against HDC?

Answer 5

Fraud in execution, Forgery, insanity, alteration, infancy, illegal, duress, discharge in bankruptcy, suretyship, statue of limitations.

Question 6

What is the priority in collateral?

Answer 6

R-7 pg 34

Question 7

What is the priority in bankruptcy?

Answer 7

Pg 56- 58