Facts: Christina Blasco entered into a "payday loan" with Money Services Center (MSC). MSC loaned Blasco $500 and return Blasco left MSC with a signed check for $587.50 which it promised not to cash for two weeks. (Note that Blasco is laying 17.5% interest for a two-week loan, which is an annual compounded rate of 6500%.)

Before MSC could cash the check, Blasco filed for bankruptcy. Although MSC knew this, it deposited the check. It is illegal for creditors to attempt to collect a debt once a debtor has filed for bankruptcy, but creditors are entitled to payment on negotiable instruments.

The numerical amount on Blasco's check was $587.50, but the amount written in words was "five eighty-seven and 50/100 dollars." Did the words mean "five hundred eighty-seven" or "five thousand eighty-seven"? Was the check negotiable despite this ambiguity? (hint: this question is not the issue). To determine whether the check was a negotiable instrument, it must state a promise to pay a definite amount of money. The numerical amount of the check was "$ 587.50", but the amount stated in words was "five eighty-seven and 50/100 dollars." For the words to prevail over the numbers, the two have to be contradictory.

1. What are the two issues in this case? Remember to phrase the issues as questions.
2. What rule of law governs this case?
3. Analyze this case. Apply the rule of law to the facts.
4. What is the conclusion of the case? How do you rule, your Honor?
5. To be negotiable, what must a note contain? List all requirements.