Bryce borrowed funds from Rock Canyon Bank for his education and signed a note for the amount payable to the bank. The bank indorsed the note and transferred it by delivery to the U.S. Department of Education. When Bryce did not pay the note, the government asked a court for an order to garnish his wages. Bryce argued that he had not signed any document promising to pay the government and thus its claim was invalid.

Was the government entitled to enforce the note? Yes.

Negotiation is the transfer of an instrument in such form that the transferee becomes a holder—a person who, by the terms of the instrument, is entitled to enforce it. If the instrument is an order instrument, it is negotiated by delivery with any necessary indorsements. In the facts of this problem, the bank ______________ the note with the necessary ______________ by ______________ to the government.