Asked by Briana Haddad on Jul 30, 2024
Verified
The maker of a bearer note that has not been negotiated is obligated to pay the draft to anyone who is holding the instrument.
Maker
A person obligated as the payor on a promissory note. See also comaker.
Bearer Note
A type of fixed-income security that is not registered by the issuer, allowing any holder in possession to collect on it.
Draft
A preliminary version of a document or plan that is subject to revisions or editing.
- Acquire knowledge on the duties and liabilities of entities participating in negotiable instruments.
Verified Answer
MC
Matty CopelovitchJul 31, 2024
Final Answer :
True
Explanation :
A bearer note is payable to whoever presents the instrument for payment, regardless of who the original payee might have been. Therefore, the maker of the note is obligated to pay whoever is holding the instrument at the time of payment.
Learning Objectives
- Acquire knowledge on the duties and liabilities of entities participating in negotiable instruments.