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16 Cards in this Set
- Front
- Back
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Nature of Negotiation
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the transfer of possession or of a negotiable instrument by a person to another person who becomes the holder
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Bearer Paper
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if an instrument is payable to bearer or to cash
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Indorsement
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a signature
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Special Indorsement
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contains the signiture of the indorser along with the words indicating to whom or to whose oder, the instrument is payable
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Blank
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if indorser merely signs his name and does not specify to whom the instruments is payable
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Restrictive Indorsement
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one that specifies the purpose of the indorsement or specifies the use to be made of the instrument
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Qualified Indorsement
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indorser disclaims liability to make the instrument good if the maker or drawer defaults it
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Holder
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a person with possession of an instrument
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Good Faith
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the person obtained it honestly and in observance of reasonable commercial standards of fair dealing
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Irregular Paper
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if negotiable instrument contains a facial irregularity
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Incomplete
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material term is blank, should put the person on notice that the drawer may have a defense to payment of it
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Shelter Rule
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transfer obtains the rights of transfeor and any rights as a holder in due course
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Real Defense
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some claims and defenses to payment of an instrument that go to the validity of the instrument
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Personal Defense
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those that avoid or reduce liability
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Claims to the Instrument
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holder in due cause takes free claims that arose before beomcing a holder
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Claims to Recoupment
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not a defense, really an offset against liability
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