14. The first bank to receive a check for payment is the intermediary bank. 15. If a mortgage note states that it is both secured by a mortgage and subject to the terms and conditions of a mortgage, then it will be deemed to be negotiable. 16. Assume that Harry fraudulently induces Joe to sign a promissory note for $ 5000. If Harry transfers the promissory note to Bill for valid consideration, then Bill will be able to collect the debt from Joe - despite the fraud, because he was an innocent third party. 17. Suppose that Jack finds a negotiable instrument that says "payable to order of bearer". If Jack attempts to cash the instrument, his request will not be honored by the drawee because it has no way of verifying whether he was the one to hold the instrument. 18 Assume that Sally gives a check to Bill in exchange for his promise to marry her cousin Cindy but that Bill subsequently marries another woman and refuses to return the check. If Sally puts a stop payment order on the check before Bill negotiates the instrument to Richard, who acquires the check as a holder in due course, then Sally may avoid payment. 19 Suppose that John executes a promissory note on behalf of his partnership, Murah Beer Company in favor of Dick. If Dick later indorses the note to Jane who then indorses it to Mary then Mary will be entitled to present the note for payment to John or any of the other partners of Murah Beer Company 20. Suppose that Henry impersonates a famous comedian and goes into a shop and convinces the shopkeeper to issue a check to him in the name of the famous comedian, purportedly as part of a fundraising campaign for a new hospital. If Henry negotiates the check to a check cashing store by signing the name of the comedian, then the shop keeper will be able to stop payment on the grounds of forgery. 21. Assume that Jane writes a check to cover a $ 300 payment to Carl, a landscaper who performed services at Jane's residence but she fails to fill in the amount on the check. If Carl decides that his performance was actually worth $ 3,000 and alters the check accordingly before cashing it, then Jane will be able to compel her bank to re-credit her account for $ 2,700 even though the bank paid the item in good faith. 22. A US government issued check or draft must be presented for payment within six months from date of issuance. 23. Order paper may be converted to bearer paper but bearer paper may not be converted to order paper. 24. The Statute of Limitations for "warranty liability" of a negotiable instrument is six years. 25. In the event of a conflict between numbers and words on a negotiable instrument, numbers control unless they are unclear or ambiguous. 14. The first bank to receive a check for payment is the intermediary bank. 15. If a mortgage note states that it is both secured by a mortgage and subject to the terms and conditions of a mortgage, then it will be deemed to be negotiable. 16. Assume that Harry fraudulently induces Joe to sign a promissory note for $ 5000. If Harry transfers the promissory note to Bill for valid consideration, then Bill will be able to collect the debt from Joe - despite the fraud, because he was an innocent third party. 17. Suppose that Jack finds a negotiable instrument that says "payable to order of bearer". If Jack attempts to cash the instrument, his request will not be honored by the drawee because it has no way of verifying whether he was the one to hold the instrument. 18 Assume that Sally gives a check to Bill in exchange for his promise to marry her cousin Cindy but that Bill subsequently marries another woman and refuses to return the check. If Sally puts a stop payment order on the check before Bill negotiates the instrument to Richard, who acquires the check as a holder in due course, then Sally may avoid payment. 19 Suppose that John executes a promissory note on behalf of his partnership, Murah Beer Company in favor of Dick. If Dick later indorses the note to Jane who then indorses it to Mary then Mary will be entitled to present the note for payment to John or any of the other partners of Murah Beer Company 20. Suppose that Henry impersonates a famous comedian and goes into a shop and convinces the shopkeeper to issue a check to him in the name of the famous comedian, purportedly as part of a fundraising campaign for a new hospital. If Henry negotiates the check to a check cashing store by signing the name of the comedian, then the shop keeper will be able to stop payment on the grounds of forgery. 21. Assume that Jane writes a check to cover a $ 300 payment to Carl, a landscaper who performed services at Jane's residence but she fails to fill in the amount on the check. If Carl decides that his performance was actually worth $ 3,000 and alters the check accordingly before cashing it, then Jane will be able to compel her bank to re-credit her account for $ 2,700 even though the bank paid the item in good faith. 22. A US government issued check or draft must be presented for payment within six months from date of issuance. 23. Order paper may be converted to bearer paper but bearer paper may not be converted to order paper. 24. The Statute of Limitations for "warranty liability" of a negotiable instrument is six years. 25. In the event of a conflict between numbers and words on a negotiable instrument, numbers control unless they are unclear or ambiguous