Test 2 - Listing

Question 1

5 Requirements for a Negotiable Instrument

Answer 1

• In Writing
• Unconditional Promise or Order to Pay to Order or Bearer
• Payable on demand or at a specific time
• Sum Certain
• Signed by maker or drawer

Question 2

5 Real Defenses

Answer 2

• Maker or Drawer goes Bankrupt
• Forged Signature
• Material Alteration
• Extreme Incapacity
• Fraud in the Execution

Question 3

5 Personal Defenses

Answer 3

• Breach of Contract
• Failed Consideration
• Wrongful Completion
• Duplicate Payment
• Fraud in the Inducement

Question 4

5 Types of Endorsements

Answer 4

• Blank
• Restrictive
• Special
• Qualified
• Combo

Question 5

Requirements for Holder in Due Course

Answer 5

• Must be a holder of Negotiable Instrument
• Must take for value
• Must take in good faith
• must be free from knowledge or notice

Question 6

5 Transfer Warranties

Answer 6

• No forged signatures
• No material alterations
• no insolvency
• No claim/breach
• Enforceable/Transferor is entitled to be paid

Question 7

Types of Bankruptcy

Answer 7

Ch. 7 - Liquidation of Company
Ch. 9 - Municipalities 
Ch. 11 - Reorganize Company
Ch. 12 - Farmers
Ch. 13 - Individual/Personal