Explain is the instrument negotiable

Assignment Help Business Management

Reference no: EM131386802

Horne executed a $100,000 note in favor of R. C. Clark. On the back of the instrument was a restriction stating that the note could not be transferred, pledged, or otherwise assigned without Horne's written consent.

As part of the same transaction between Horne and Clark, Horne gave Clark a separate letter authorizing Clark to pledge the note as collateral for a loan of $50,000 that Clark intended to secure from First State Bank. Clark did secure the loan and pledged the note, which was accompanied by Horne's letter authorizing Clark to use the note as collateral.

First State contacted Horne and verified the agreement between Horne and Clark as to using the note as collateral. Clark defaulted on the loan.

When First Bank later attempted to collect on the note, Horne refused to pay, arguing that the note was not negotiable as it could not be transferred without obtaining Horne's written consent. This suit was instituted. Is the instrument negotiable? Explain.

Reference no: EM131386802

Questions Cloud

Design-code and test an application : Design, code, and test an application that simulates a screensaver. The application should randomly draw lines using method drawLine of class Graphics.

Explain in detail why the given category was selected : Review the meaning of the different ethical dilemma categories and identify the correct category depicted in the case scenario? Using the case scenario facts and the course readings, explain in detail why this this category was selected?

Is the note a negotiable instrument : Rogers and Blythe then assigned the note to Charter Bank, and the bank sought to foreclose on the note and mortgage. Holly Hill Acres refused to pay, claiming that it was defrauded by Rogers and Blythe. Is the note a negotiable instrument? Why?

What is the impedance of the circuit : An RC series circuit is connected to a 480 volt, 60 Hz line. The apparent power of the circuit is 8.2 kVA. What is the impedance of the circuit?

Explain is the instrument negotiable : When First Bank later attempted to collect on the note, Horne refused to pay, arguing that the note was not negotiable as it could not be transferred without obtaining Horne's written consent. This suit was instituted. Is the instrument negotiable..

How much current is flowing in the circuit : An RC series circuit is connected to a 277 volt, 60 Hz line. The resistor has a power dissipation of 146 watts and the capacitor is using 138 VARs. How much current is flowing in the circuit?

Is the instrument payable to order or bearer : It is subject to Lincoln's defense that the mortgage was not supported by consideration because an antecedent debt is not consideration. Is the instrument payable to order or bearer? Discuss.

Define the components of risk management : Define the components of risk management. Explain the activities involved in each activity.

Discuss about the functions of human resources : You are a Manager-In-Training (MIT) program at North Valley Hospitals System's Medical Group (NVMG). Previously you've conducted a presentation on ways to communicate change while motivating employees. Employee Performance and Improvement are very..

User Account

All Pages