LNG LLC and Mainline Utility Corporation enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mainline to pay $50,000 to LNG's order in sixty days. Mainline signs and dates the draft. LNG can sell the draft to
A) Mainline only.
B) LNG's bank only.
C) any party after the draft has been paid.
D) any party before payment is due.
Correct Answer:
Verified
Q1: If a check is made "payable to
Q4: The holder of a note who needs
Q7: To avoid the risk of loss from
Q17: To most securely minimize the risk of
Q19: A check "payable to the order of
Q22: Warranty liability arises in the negotiation of
Q24: In terms of requirements for holder-in-due-course (HDC)
Q25: Every party who signs a negotiable instrument
Q26: A consumer who signs a note to
Q28: A promise that states an express condition
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