41. State securities laws

a.are known as blue sky laws.

b.were implicitly repealed by federal securities law in 1934.

c.are rarely enforced because of federal securities law.

d.impose no criminal penalties for violation.

42.A "without recourse" indorsement

a.relieves the indorser of liability for the check's payment.

b.cannot be made on a post-dated check.

c.relieves the indorser of liability for the check's payment for 30 days after the indorsement.

d.can be treated as dishonoring a check.

43.A blank indorsement

a.creates a bearer instrument.

b.cannot follow and unqualified indorsement on a check.

c.creates an order instrument.

d.is not permitted in some (non-UCC) states.

44.John inherits a $10,000 promissory note payable to his late father.

a.John is a holder in due course.

b.John is not a holder in due course.

c.John can make himself a holder in due course by indorsing the promissory note, "HDC".

d.cannot negotiate the promissory note without first obtaining an order from the probate court.

45.Negotiating an order instrument

a.requires delivery and indorsement.

b.requires delivery and either a written or oral order to pay.

c.requires delivery.

d.must be done in person.

46.An acceleration clause

a.can be used in a mortgage note but no other kind of promissory note.

b.allows the payee of a time instrument to demand payment of the entire remaining amount due.

c.cannot be enforced against a governmental agency (state or federal).

d.is considered unconscionable by the courts of some states.

47.When a time instrument states that the amount due is "with interest"

a.it is too vague and no interest will be charged.

b.the interest rate to be paid is the date-of-instrument interest rate charged on U.S. Treasury Notes.

c.the interest rate to be paid is the date-of-instrument rate charged on U.S. Treasury Notes plus 1%.

d.the interest rate to be paid is the judgment rate of interest fixed by statute in the state where the instrument is made.

48.A bank that pays a customer's check bearing a forged indorsement

a.must re-credit the customer's account.

b.must re-credit the customer's account if the check amount is over $50.

c.will not have to re-credit the customer's account unless notified of the forgeryby the customer within 15 business days of payment.

d.will not have to re-credit the customer's account unless the forgery can be said to be obvious under the UCC definition.

49. A mechanic's lien

a.is secured by real property.

b.is secured by personal property.

c.is an unsecured general obligation to pay.

d.cannot be imposed on a charitable organization as defined by the Internal Revenue Code.

50.Garnishment

a.allows a creditor to collect a debt by taking property of the debtor's being held by a third party.

b.first requires a writ of attachment.

c.first requires a writ of execution.

d.first requires a foreclosure proceeding.