Term
| 4 Negotiable instruments covered by UCC |
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Definition
| Drafts, checks, CD's and Promissory Note |
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Term
| Classified as orders to pay |
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Definition
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Term
| Who has Primary liability? |
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Definition
| makers (Drawee) of notes and cd's and ACCEPTORS of checks and drafts |
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Term
| Who has Secondary liability? |
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Definition
| drawers of drafts and checks; unqualified indorsers |
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Term
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Definition
1.Underlying K
2.Holder in due course |
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Term
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Definition
1.failure
2.breach of warranty
3.Fraud
4.Mistake
5.Set-off
6.Undue influence
7.Most duress |
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Term
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Definition
1.fraud in the inception
2.illegality
3.Capacity issues
4.Extreme duress |
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Term
| What is the prevailing body of law when a P/N is used? |
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Definition
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Term
| What section of the UCC covers qualifications of a HDC? |
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Definition
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Term
| What section of the UCC covers the shelter provision? |
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Definition
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Term
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Definition
1.Pay value
2.taken instrument in good faith
3.Has to be without notice of any defense against the instrument |
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Term
| What defenses are HDCs immune to that Assignees are not? |
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Definition
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Term
| 5 Requirements for Negotiability: |
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Definition
1.In writing and signed
2.Unconditional promise or order
3. Sum certain in money and no other requirement for discharge
4.Payable on demand or at the definite time
5.Payable to order to the bearer |
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Term
| 3 Negotiation Instruments |
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Definition
1.Bearer paper
2.Order paper
3. endorsements |
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Term
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Definition
1.Blank
2.Special
3.Restrictive
4.Unqualified
5.Qualified |
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Term
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Definition
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Term
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Definition
| has to have an endorsement |
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Term
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Definition
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Term
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Definition
| an endorsement that is NOT qualified |
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Term
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Definition
| relieves transferor of secondary liability |
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Term
| Attachment of a security instrument occurs when? |
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Definition
| either at the K's conception or when the debtor has an interest in the collateral |
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Term
| Perfection of a security instrument occurs when? |
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Definition
| once the financing statement has been signed or once the collateral is received by the creditor |
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Term
| Characteristics of the Financing Statement: |
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Definition
UCC-1
Creditor is the Secure party
filed as public record
debtor is on constructive notice |
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