Warren makes out a promissory note payable to the order of George. George indors
ID: 345407 • Letter: W
Question
Warren makes out a promissory note payable to the order of George. George indorses the note by writing on it"without recourse, George" and transfers the note for value to Ali. Ali, who owes a debt to Ken, negotiates the check to Ken by indorsing it with the words "Pay to Ken, Ali. On the due date of the note, Ken presents the note to Warren for payment, only to learn that Warren has filed a petition for bankruptcy which will have all debts discharged. State and define the type of indorsements made by each indorser of the note. b. a. State and explain the type of defense Warren has to Ali's demand for payment. State whether Ali and/or George is liable to pay to Ken and support your answer with c. the law. d. State the three requirements of a HDC, apply them to the facts and state whether Ken is an HDC. Diesal Corporation pays its employees every two weeks. Ella, a Diesal employee paycheck and indorses the back ("Ella Smith"), but loses the check before cashing it or depositing it. George finds it s every a. Has the check been negotiated to George? State the law that supports your answer. Hint: what type of instrument was the check originally and what did it become after Ella indorsed it? If George signs the back of the check beneath Ella's signature, state whether George can the check. (What type of indorsements were involved? If so, what might Ella have done to avoid the loss? b. c. Lorie signs a note that states, "Payable in thirty days." The note is dated March 2. Mitch buys the note on April 3 . State the requirements for a holder to be a holder in due course? Is Mitch a holder in due course? Explain your answer by applying the law regarding the requirements of a HDC. a. b.Explanation / Answer
Warren said that It is the promissory note which has been endorsed by the George as payment has been made on behalf of his order. But George endorsed as without recourse to avoid his responsibility. So, he is not at all responsible for this issue.
The Ken qualifies as HDC as he has the good faith on the Warren and he take the instrument for the value. He presents the note to the Warren for the payment. This is without notice.
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