Fact Pattern 27-1
Chuck is the maker of a $200,000 promissory note payable to Investors Corporation. Investors indorses the note to Equity Lenders, which in turn indorses it to Select Holdings LLC, which then indorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1. Global Bank properly presents the note to Chuck for payment, but he dishonors it. With timely notice to the proper parties, Global Bank may collect payment on the note from
A) Investors, Equity Lenders, or Select Holdings.
B) Investors or Equity Lenders only.
C) Select Holdings only.
D) no one.

Question

Fact Pattern 27-1
Chuck is the maker of a $200,000 promissory note payable to Investors Corporation. Investors indorses the note to Equity Lenders, which in turn indorses it to Select Holdings LLC, which then indorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1. Global Bank properly presents the note to Chuck for payment, but he dishonors it. With timely notice to the proper parties, Global Bank may collect payment on the note from​
A) ​Investors, Equity Lenders, or Select Holdings.
B) ​Investors or Equity Lenders only.
C) ​Select Holdings only.
D) ​no one.

Quizplus · Accepted Answer

As per the chain of indorsements, any of the previous parties who have indorsed the note can be held liable for payment by the present holder, Global Bank. Therefore, Global Bank may collect payment from Investors, Equity Lenders, or Select Holdings with timely notice to the proper parties.

Fact Pattern 27-1 Chuck Is the Maker of a $200,000 Promissory Note Payable