A check on the back is indorsed as "Pay to the Order of City Water, Inc" is called indorsement. Special Indorsement Restritive Indorsement Blank Indorsement Partial Indorsement A holder in due course who acquires the assignor's rights and liabilities take the instrument free of claims or defenses by previous possesors. True False The elements for a Holder in Due course are: To be a holder of a negotiable instrument; taken for value, in good faith and with notice. True False Carly files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to provide a fresh start, free from creditors' claims. shield assets from creditors' claims. encourage the continued use of credit to borrow funds. ensure that third parties will continue to guarantee loans. The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor. True False In the majority of states, debtors may use only federal, not state, exemptions to exempt certain property from the bankruptcy. True False