Question
Dennis Barker breaks into Frank McClanahan's office and steals the following negotiable instruments: a check made payable by Frank to the order of Frances Sweeney
Dennis Barker breaks into Frank McClanahan's office and steals the following negotiable instruments: a check made payable by Frank "to the order of Frances
Sweeney" in the amount of $500; a promissory note made payable by Frank "to bearer" in the amount of $1, 000; and a check made payable by Mike Murphy "to the order of Frank McClanahan" in the amount of $750(Frank has signed only his name on the back of the instrument). Dennis sells all three instruments to Betty Benson for $1, 750. Betty has no idea that the instruments are stolen. She accepts delivery of the instruments, not realizing that Dennis has forged Frances Sweeney's indorsement on the check made payable to Frances order. Was Dennis Barker a "holder of the instruments? Is Betty Benson a "holder" of the instruments? Can Betty collect payment of the instruments despite the fact that they were stolen from Frank McClanahan? Explain your answers fully.
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