Under the Revised Article 3 Rules for Beneficiaries,in the Event

question 17

Multiple Choice

Under the Revised Article 3 rules for beneficiaries,in the event of a breach of transfer warranty:

• A)the damages recoverable will be less than the amount of the instrument.
• B)the damages recoverable may not be more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
• C)a beneficiary of the transfer warranties who took the instrument in good faith may not recover form the warrantor an amount equal to the loss suffered as a result of the breach.
• D)no damages may be recovered.

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Definitions:

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, governed by bankruptcy law.

Automatic Stay

After bankruptcy has been filed, a moratorium during which creditors cannot bring or continue action against the debtor or his or her property.

Discharging Debts

The process of eliminating debts through various means, such as bankruptcy or fulfillment of payment terms.

Automatic Stay

A provision in bankruptcy law that halts actions by creditors to collect debts from a debtor who has declared bankruptcy, providing temporary relief.