Flashcards in General Deck (4):
1) Identify TYPE of paper
2) Identify PARTIES
3) Determine if INSTRUMENT is NEGOTIABLE
4) Determine if INSTRUMENT was PROPERLY negotiated
5) Determine if TRANSFEREE is a HOLDER in DUE COURSE (HDC)
6) Determine P CAUSE of ACTION such as contract, warrant, tort, or no properly payable.
7) Determine D's DEFENSES
8) If D is held liable, may D PASS LIABILITY on to another party.
Not properly Payable
* An altered check is not properly payable, and bank needs to recredit.
2) Bank Statement Rule
Effect on Holder in Due Course
Change in Obligation
* HDC may enforce the original amount
* HDC may enforce full