BLS 112 Chapter Notes - Chapter 26: Security Interest, Bearer Instrument, Raj Gupta

• School: Binghamton University
• Department: Business Law and Society
• Course: BLS 112
• Professor: S U N Y Ulster

Document Summary

Chapter 26: transferability & holder in due course: negotiation. Not signing (indorsing) the back of a check. Negotiating bearer instruments: payable to bearer negotiated by delivery, no indorsement need, greater risk of loss from theft than order instruments, ex. Indorsement: signature with or without additional words or statements: indorser person who transfers note/draft by signing & delivering it, indorsee person to whom check is indorsed & delivered to. 4 main categories: blank indorsement: does not specify particular indorsee; can consist of mere signature [ucc 3-250(b), converts order instrument to bearer instrument, special indorsement: contains signature of the indorser & names the indorsee. Instrument is an order instrument: convert blank indorsement to. Indorsements to pay only a named payee: ex. Pay to julie diaz only, [signed] : does not destroy negotiability, same legal effect as special indorsement, conditional indorsements, payment depends on occurrence of some event specified, ex.