Which of the Following Will Result in an Instrument Being

question 24

Multiple Choice

Which of the following will result in an instrument being nonnegotiable?

• A) It contains a variable interest rate such that the amount of interest that will be due cannot be determined at the time the note is created.
• B) It states that the payment of funds will come from the proceeds of a specific contract.
• C) It states that the entire balance will become immediately due in the event of a default by the maker.
• D) It states that the rights of the payee to receive payment are subject to the terms of a separate agreement.