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UFundMyCo11ege
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Joined: 27 Jun 2011
Location: United States
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Posts: 99
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| Posted: 15 Aug 2012 at 12:52 | IP Logged
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Which of the following on the face of an otherwise
negotiable instrument will affect the instrument's
negotiability?
(A) The instrument is postdated.
(B) The instrument is payable 6 months after the death of
the maker.
(C) The instrument is payable at a definite time subject
to an acceleration clause in the event of a default.
(D) The instrument contains a promise to provide
additional collateral if there is a decrease in value of
the existing collateral.
__________________
BEC---10/20/11: 81 (PASSED)
FAR---11/21/11: 76 (PASSED)
AUD---2/4/12: 71; 7/16/12: 95 (PASSED)
REG---5/29/12: 69; 8/20/12: 78 (PASSED)
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mukhya
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| Posted: 16 Aug 2012 at 01:14 | IP Logged
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Answer would be "B"
Because we never know when is he/she going to die.
So it is not payable on definite time.
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UFundMyCo11ege
Contributor
Joined: 27 Jun 2011
Location: United States
Online Status: Offline
Posts: 99
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| Posted: 16 Aug 2012 at 13:04 | IP Logged
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Correct Answer: (B)
The death of the maker is uncertain, therefore the
instrument is not payable on demand. This uncertainty
destroys negotiability.
__________________
BEC---10/20/11: 81 (PASSED)
FAR---11/21/11: 76 (PASSED)
AUD---2/4/12: 71; 7/16/12: 95 (PASSED)
REG---5/29/12: 69; 8/20/12: 78 (PASSED)
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Topic: REG Question of the Day - August 15
Topic Closed)
