Question

ment 13. Holly Hill Acres, Ltd. executed and delivered a promissory note rity." and a purchase money mortgage to Rogers and Blythe. The note provided that it was secured by a mortgage on certain real estate and sale that the terms of that mortgage "are by this reference made a part Tursi. hereof." Rogers and Blythe then assigned the note to Charter Bank store and the bank sought to foreclose on the note and mortgage. Holly nce of Hill Acres refused to pay, claiming that it was defrauded by Rogers and Blythe. Is the note a negotiable instrument? Why? ement

Answer 1

Negotiable Instruments are the legal documents defines rights and duties. If you take loan from any bank you should be ask by bank to sign a promissory note that you will return money in specific time limit.

Negotiable instruments refer to promissory notes, treasury bills, share warrants,bill of exchange, cheques,drafts payable to order or to bearer. They possess the feature of negotiablity, and promise to pay later.

Now Holly Hill Acres Ltd. delivered a promissory note ,a written and unconditional undertaking to Roger and Blythe. Means that Holly Hill Acres Ltd. gives a guarantee of specific sum of money and this can be transferable and time specific also. Roger and Blythe transferred that promissory note to Charter Bank.

Things that make it Negotiable are:

1. This is a written statement.

2. Promise to pay money.

3. Payee of note are certain.

4. Maker of note are certain.

5. Money Mortgage makes this note time specific also.

6. Can be traded or transfer.

7. This note can be special endorsement or restricted endrosement between both Holly Hill Acres Ltd and Roger and Blythe.Which can be negotiable.