Question: Sam had a checking account at Piggy Bank. Piggy sent him special checks that he...

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Question: Sam had a checking account at Piggy Bank. Piggy sent him special checks that he could use to draw down a line of credit. When he used these checks, Piggy did not take money out of his account; instead it treated the checks as loans and charged him interest. Piggy then sold these used checks to Wolfe. Were the checks negotiable instruments? Strategy: When faced with a question about negotiability, begin by looking at the list of six requirements. In this case, there is no reason to doubt that the checks are in writing, signed by the issuer, with an unconditional promise to pay to order at a definite time. But do the checks state a definite amount of money? Can the holder "look at the four corners of the check" and determine how much Sam owes? Result: Sam was supposed to pay Piggy the face amount of the check plus interest. Wolfe does not know the amount of the interest unless he reads the loan agreement. Therefore, the checks are not negotiable.