Because a Party's Authenticating Intent with Respect to a Note

question 49

Multiple Choice

Because a party's authenticating intent with respect to a note is shown by the name of the party written on the line that calls for the name of that party,

• A)the name must be handwritten to negotiate the note.
• B)a signature of the name must be witnessed to effect an assignment.
• C)a stamped imprint of the name can be sufficient to transfer the note.
• D)proof that an indorsement is legitimate is required to validate the note.

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Definitions:

Loan

Money, property or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges.

Chattel Mortgage

A loan arrangement in which an item of movable personal property acts as collateral for the loan.

Conditional Sales Contract

An agreement where the buyer takes possession of an item but its formal title and ownership remain with the seller until all terms of the contract are fulfilled.

Purchase Money Securities Interest

A legal claim that allows lenders to have a security interest in an item that was purchased with the funds they provided.