Question

Eden signs a promissory note payable to the order of First Mortgage Company. The note states...

Eden signs a promissory note payable to the order of First Mortgage Company. The note states that it is payable “with interest at the legal rate.” This note is​

a.

​nonnegotiable, because the exact amount payable cannot be determined from the face of the instrument.

b.

​nonnegotiable, because it does not specify a rate of interest.

c.

​negotiable.

d.

​nonnegotiable, because it is payable with interest.

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Answer #1

Option C is the answer

Negotiable

As it is given that the note is payable with interest at the legal rate, the note is negotiable.

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