Answer True & False

Name: 18. A person who receives an instrument as a gift nomally becomes an ordinary holder. 19. A person who acquires a check stamped "insufficient funds" is put on notice and thereby acquires HDC status. 20. Knowledge of one defense precludes a holder from asserting HDC status in regard to all other defenses. 21. A drawer's liability does not arise until presentment and notice of dishonor. 22. To properly present a draft for payment, the holder must present it to the drawer. 23. Presentment warranties protect the person to whom an instrument is presented for payment. 24. A person whose name is forged on an instrument is liable to pay only a holder in due course the value of the forged instrument. 25. All parties to a negotiable instrument will be discharged when the party primarily liable on it pays to a holder the full amount due. 26. The death of a customer immediately revokes a bank's authority to pay an item. 27. A bank that pays a customer's check bearing a forged indorsement is not obligated to recredit the customes 28. Each bank in a collection chain must pass a check on before midnight of the next business day following its information on an item after the item has been issued warrants to any subsequent bank account. receipt. that the encoded information is correct. A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds. 30. tiple Choice