Asked by Jonathan Berger on Apr 24, 2024
Which of the following is true regarding when, and if, the note was initially dishonored?
A) The note has never been dishonored because Floyd's right to receive payment on the note from someone is acknowledged.
B) Hema initially dishonored the instrument when she asked for proper identification.
C) Hema initially dishonored the instrument when she refused to pay it on the basis that she lacked funds with which to do so.
D) The note was not dishonored until Anne told Floyd that he would have to seek recovery from Rahul.
E) The note was considered initially dishonored 30 days after Floyd started seeking Rahul, but was unable to find him.
Promissory Note
A written promise to pay a specified amount of money, either on demand or at a future date.
Reasonable Identification
A requirement in certain transactions, such as the presentation of an identifiable document that can confirm the identity of a person.
Dishonored
Dishonored describes a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.
- Learn about the criteria for valid presentment and the necessary procedures for notice in the context of negotiable instruments.
Learning Objectives
- Learn about the criteria for valid presentment and the necessary procedures for notice in the context of negotiable instruments.