Below is a note which your client, Robinson Real Estate, Inc., obtained from Grant in connection with Grant's purchase of a homesite located in Bangor, Maine. The note was given for the balance due on the purchase and was secured by a first mortgage on the

homesite

$17,000.00

Bangor, Maine

November 1. 1982

For value received, five years after the date, I promise to pay to the order of Robinson Real Estate, Inc., SEVENTEEN THOU SAND and 00/100 DOLLARS with interest at 15% compounded annually until fully paid. This instrument arises out of the sale of land located in Maine and the law of Maine is to be applied to any question which may arise. It is secured by a first mortgage on the land conveyed. It is further agreed that:

1. Purchaser will pay the costs of collec tion including attorney's fees upon de-fault.
2. Purchaser may repay the amount outstanding on any anniversary date of this note.
3. This note is subject to such implied conditions as are applicable to such notes.

.+ Hrent

Robert Grant

This note is a.

A. Nonnegotiable promissory note since it is secured by a first mortgage.

B. Nonnegoriable promissory note since it permits prepayment and requires the maker's payment of the costs of collection and attorney's fees.

C. Negotiable promissory note.

D. Negotiable investment security under the

Uniform Commercial Code.

your client:

The following instrument has been received by

October 15, 1981

To: Bill Souther

Rural Route 1

Waverly, Iowa

Pay to the order of James Olson six hundred dollars,

Robert Smithe

Robert Smythe

Which of the following is correct?

a. The instrument is payable on demand.

B. The instrument ts a negotiable note:

C. Bill Souther is the drawer, he is primarily liable for the instrument.

d. As Bill Souther is the drawee, he is second. arily liable on the instrument.

7. Which of the following provisions contained in an otherwise negotiable instrument will cause it to be nonnegotiable?
A. It is payable in Mexican pesos.
B. It contains an unrestricted acceleration clause.
C. it grants to the holder an option to purchase land.
.D.It is limited to payment out of the entire assets of a partnership.

8.A client has in its possession the instrument below.

I, Margaret Dunlop, hereby promise to pay to the order of Caldweil Motors five thousand dollars ($5,000) upon the receipt of the final distribution from the estate of my deceased uncle, Carlton Dunlop. This negotiable instrument is given by me as the down payment on my purchase of a 1981 Lincoln Continental to be delivered in two weeks.

Margaret Dunlop

The instrument is a.

A. Negotiable.

B. Not negotiable as it is updated.

C. Not negotiable in that it is subject to the two-week delivery term regarding the purchase of the lincoln continental

D. not negotiable because it is not payable at a definite time