Fact Pattern 27-1B (Questions B6-B7 apply)
Charlton is the maker of a $200,000 promissory note payable to Development & Sales Corporation. Development & Sales indorses the note to Equity Lenders, which in turn indorses it to First Select Investors, which then in?dorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1B. Suppose that First Select pays Global Bank on the note. With timely notice to the proper parties, First Select may then collect payment on the note from
A) Charlton, Development & Sales, or Equity Lenders.
B) Charlton or Development & Sales only.
C) Equity Lenders only.
D) no one.

Question

Quizplus · Accepted Answer

As the holder in due course of the promissory note, First Select Investors may collect payment on the note from any party liable on the instrument, which includes Charlton (the maker), Development & Sales (the original payee), or Equity Lenders (the immediate indorser). Therefore, choice A is the correct answer.

Fact Pattern 27-1B (Questions B6-B7 Apply)