Which of the Following Is a Warranty of the Transferor

question 34

Multiple Choice

Which of the following is a warranty of the transferor?

• A) Transferor warrants that all signatures are authentic and authorized.
• B) Transferor warrants that he is entitled to enforce the instrument.
• C) Transferor has no knowledge of any insolvency proceedings with respect to the maker, acceptor, or drawer of an unaccepted instrument.
• D) All of these are warranties of the transferor.

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Definitions:

Maturity Date

The date on which a financial obligation or investment becomes due for payment or expires, marking the end of its term.

Bank Loan

A bank loan is a sum of money lent by a bank to a borrower at an agreed interest rate and repayment schedule.

Promissory Note

A written promise to pay a specified sum of money to a designated person or bearer at a fixed or determinable future time.

Past-Due Account

An account that has not been paid by the due date, typically relating to receivables or loans.