Asked by Chaya Kohsuwan on Jun 04, 2024
Verified
Bill goes to First Bank to get a loan. He signs a note and agrees to repay the bank. What is the legal term for Bill's status regarding the note?
A) Payee.
B) Maker.
C) Payor.
D) Drawer.
Legal Term
A word or phrase with a specific meaning within the context of the law.
Loan
A financial agreement where a borrower receives funds with the obligation to repay them with interest over a defined period.
Note
A written promise or acknowledgement of a debt, where the writer agrees to pay the specified sum of money to the bearer or to a specific individual.
- Identify the distinct roles and commitments of entities engaged in negotiable instruments.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
B
Explanation :
Bill is the "Maker" of the note because he is the one who has signed the note agreeing to repay the bank, making him responsible for making payments on the loan.
Learning Objectives
- Identify the distinct roles and commitments of entities engaged in negotiable instruments.