BLA 461 Lecture Notes - Lecture 5: Commercial Paper, Promissory Note, Contract
Document Summary
Patient (obligor) dentist (assignor) x bank (assignee) If obligor has a good defense, he doesn"t have to pay the assignee. Is the instrument negotiable: has it been a proper transfer, how do you become a hidc, defenses (personal defense. Introductory terms: flow of a check, 3 parties in a check: To transfer bearer paper, just transfer possession of the instrument: order paper: payable to a specific person or entity. To transfer order paper, need an endorsement and transfer of possession: holder: in possession of a negotiable instrument payable to the holder or bearer. #1 is the instrument negotiable: must be in writing. No requirement about the format, just has to be permanent and portable: signature by the maker (note)/drawer (check), unconditional promise (note) or order to pay (check). Mere reference rule: if there is an explanation for the payment, that is not a condition: sum certain in money, payable at a definite time or on demand /!\ exam.
