Which of the following statements does NOT affect an instrument's negotiability?
A)A draft that says: "Pay to the order of Sue Smith once she repairs my computer."
B)An instrument that says: "This confirms my $1,000 debt to Sue Smith."
C)A note that says: "Payment is conditional upon the terms of the mortgage between the parties dated June 1,2000."
D)A notes that says: "This note is secured by the property described in the parties' mortgage of June 1,2000."

Question

Quizplus · Accepted Answer

A reference to another document for a statement of rights with respect to collateral,prepayment,or acceleration does not destroy the negotiability of a note.In this case,the mortgage does not affect rights and duties of the parties to the note.It would not be necessary to examine the mortgage document to determine the rights of the parties to the note;the parties need only examine the note.

Which of the Following Statements Does NOT Affect an Instrument's