True/False
Indicate whether the
statement is true or false.
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1.
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A negotiable instrument can be transferred by assignment.
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2.
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The recipient of a negotiable instrument becomes a holder regardless of the form
of the transfer.
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3.
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A transfer of a negotiable instrument cannot give a holder more rights than its
prior possessor.
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4.
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An allonnge is required to negotiate a bearer instrument.
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5.
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A blank indorsement specifies no particular indorsee.
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6.
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An indorsee cannot use the notation "without recourse" to avoid
liability for payment on the instrument.
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7.
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A blank indorsement converts a bearer instrument to an order instrument.
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8.
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A payee whose name is misspelled on an instrument cannot indorse the
instrument.
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9.
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An HDC takes a negotiable instrument free of most defenses to it.
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10.
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A holder takes an instrument for value if he or she accepts the instrument as
security for an antecedent debt.
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11.
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A holder takes an instrument for value if he or she accepts the instrument as
payment for an antecedent debt.
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12.
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A holder takes an instrument for value by performing the promise for which the
instrument was issued.
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13.
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A person who in good faith acquires a negotiable instrument from a thief cannot
become an HDC.
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14.
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If a note is payable in thirty days, payment is due by midnight on the thirtieth
day.
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15.
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An instrument is not defective because it has been previously dishonored.
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16.
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Any installment note payment that is less than the amount due will put the
holder on notice that some of the principal is overdue.
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17.
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To become an HDC, a person must take an instrument with notice of any claim,
defense, or defect.
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18.
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A person can become an HDC only if a defense against payment is apparent on the
face of the instrument.
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19.
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A person can become an HDC only by acquiring an instrument that is so incomplete
as to lack an element of negotiability.
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20.
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Under the shelter principle, one who acquires his or her title through an HDC
acquires the HDC's rights.
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