How can we help?

You can also find more resources in our Help Center.

18 terms

bus law ch 25

STUDY
PLAY
holder
possessor of an instrument with all necessary indorsements
negotiation
transfer such that transferee becomes a holder
assignment
voluntary transfer to a third party of the rights arising from a contract
shelter rule
transferee gets rights of transferor
negotiation of bearer paper
transferred by mere possession
negotiation of order paper
transfered by possession and indorsement by all appropriate parties
imposter rule
indorsement of an impostor or of any other person in the name of the named payee is effective if the impostor has induced the maker or drawer to issue the instrument to him using the name of the payee
the fictitious payee rule
an indorsement by any person in the name of the named payee is effective if an agent of the maker or drawer has supplied her with the name of the payee for fraudulent purposes
negotiation subject to rescission
negotiation is valid even though a transaction is void or voidable
special indorsement
one identifying an indorsee to be paid and making the instrument order paper
restrictive indorsement
one attempting to limit the rights of the indorsee
unrestrictive indorsement
one that does not attempt to restrict the rights of the indorsee
indorsements for deposit or collection
effectively limit further negotiation to those consistent with the indorsement
indorsement in trust
effectively require the indorsee to pay or apply all funds in accordance with the indorsement
indorsements with ineffective restrictions
include conditional indorsements and indorsements attempting to prohibit further negotiation
unqualified indorsement
one that imposes liability on the indorser
qualified indorsement without recourse
one that limits the indorser's liability
allonge
piece of paper affixed to the instrument