Chapter Eight

38. A, for the purpose of securing credit with C, drew a bill of exchange on B, requesting B to accept It, and Informing

B that he, A, would be able to pay it when It became toe. whereupon B wrote his acceptance upon the bill. What la B called? If C knew before he extended credit to A that B accepted or would accept without any benefit to him, la B liable toC?

39. In the foregoing case, if A does not pay the bill or furnish B with fundi wherewith to pay it, what are B's rights?

40. What la acceptance for honor? What Is essential before there can be acceptance for honor? In what manner is the acceptance for honor made?

41. What steps most be taken by a holder la order to hold his rights against an acceptor for honor?

42. Define payment for honor. State the method of making payment for honor.

Chapter Nine

43. Name two sorts of negotiation

44. Define an allonge and state its purpose,

45. Hay an Indorsement be made on a separate instrument?

46. Is it necessary to use words of negotiability in an Indorsement la order to continue its negotiable character.

47. What is the rale as to partial indorsement of an in-atrumeat?

48. What Is a special Indorsement? Give an example.

49. What is a blank indorsement? Give an example. How may a blank indorsement be converted into a special indorse-ment by the indorsee or holder?

50. What is a qualified indorsement?

51. What la a reatrictlre indorsemeat? What la its purpose!

Chapter Ten

52. Who la a holder in due coarse? Why is it important that one should be a holder in due course?

53. A makes a negotiable note to B for $100. B transfers it to C for $50. What are C's rights?

54. What constitutes one a holder in good faith? Suppose one purchases negotiable paper for a very much smaller sum than its face value. Does the fact that it is procurable at this large discount prevent the purchaser from being a holder in due course?

55. Does the fact that an instrument is overdue thereby deprive it of its negotiable character? Why is it important in buying paper to purchase it before it is overdue? When is demand paper overdue in the sense that it prevents a purchaser from being a holder in due course?

56. How can one purchase with notice of a defense good against the original party and still be a holder in due course?

57. Name the defenses which the party liable on an instrument could have made against a prior party but cannot be made against a holder in due course.

58. A made out his check to B and delivered it to B, B Intending to bank it, indorsed it in blank and put it in his pocket from which it was stolen by C. C sold it to D for value. D did not know how C came by it Assume that the check is negotiable as drawn. Can the lack of delivery to C and his theft of it be used against D by any party?

59. Name the defenses which can be set up against a holder in due course.

Chapter Eleven

60. What la the contract of the maker of a note?

61. What is the contract of a drawer of a bill or check?

62. What is the contract of the acceptor of a bill?

63. What is the contract of an unqualified indorser? Of one who transfers without indorsement? Of one who indorses

"without recourse"? A was a minor. Hit made a note to B who Indorsed it without recourse to C. A plead his minority. Can C hold B? Why?

64. Who la an anomalous lndorser? What la his contract?

Chapter Twelve

65. Why does the law require certain formal steps to he taken to charge parties secondarily liable on a negotiable Instru-ment?

66. If one seeks to hold the maker of a note, must he show that on the date of Its maturity ha presented It to the maker and demanded its payment?

67. Suppose a note Is payable at a certain street address in a certain city, but the holder does not bare it there for payment on that day. What effect. If any, does this hare on the maker's liability?

68. At what date and hoar must negotiable paper he presented to the party liable thereon in order that rights against parties secondarily liable may be saved? What la the rule where paper is payable on demand? What are days of grace? Are such days allowed in most states?

69. Where paper falls due on Sunday or a legal holiday when must It be presented? What la the rule where it falls due on Saturday?

70. How la time computed where am Instrument la payable as many days or a month after sight?

7l. At what place most such paper be presented 1 To wham?

72. When may one hold an indorser or drawer notwithstanding he makes no presentment for payment to the maker or acceptor?

73. When is presentment for acceptance necessary to hold parties secondarily liable? May presentment for acceptance ha made la other cases? Why?

74. A is holder of a bill drawnupon B payable ninety days after date. A presents it for acceptance which la refused.

Unit A present the bill for payment to such drawee when due in order to hold C, the drawer?

75. At what date and hour must presentment for acceptance be made? To whom most presentment be made?

76. Name the cases la which presentment for acceptance is excused or waived?

77. What is notice of dishonor? When and to whom mast It he given? May It he given by mall?

78. What Is protest? When most it be given? Who in authorised to make protest?

79. What must the protest contain? At What place most the protest he made?

8O. What is meant by protest for hotter security?

81. Suppose yon have a note with an inderser thereon. State all the steps necessary to hold such indorser. Suppose you have an inland bill. Name the steps necessary to hold the drawer and indorser. Suppose it is a foreign bill. Name the steps necessary to be taken.

Chapter Thirteen

82. What la meant by discharge of negotiable paper? State the causes which will operate as discharge.

83. Does tender of payment operate as discharge of the instrument or any party thereto.

84. What is the effect of material alteration? What constitutes material alteration?