FOR THE FOLLOWING QUESTIONS, INDICATE WHETHER THE ANSWER IS TRUE OR FALSE.

31.In order to stop a pre authorized transfer under the E F T Act,the bankmust be notified

orally or in writing at least five days in advance.

32.The holder of a promissory note may extend time for payment indefinitely.

33.Any irregularity on the face of a negotiable instrument that calls into question its validity or terms of ownership or creates an ambiguity, will bar holder in due course status.

34.A payee or endorsee whose name is mis spelled, can indorse with the mis-spelled name,

the correct name or both.

35.When a holder collects the amount of the instrumentfrom an endorser, the endorser has no right of recourse against prior endorsers, the maker or drawer or accommodation parties.

36. Signature liability extends only to those persons who sign a negotiable instrument.

37.In general, a bank is not required to re-credit a customer's account when it pays on a forgedsignature because the customer is responsible for maintaining control over his checks.

38.Assume that Jeff signs a promissory note and indicates he is an agent but fails to identify

Patrick as the principal. In such a case, both Jeff and the unnamed principal, Patrick , will be

held personally liable for any obligations arising under the promissory note.

39. When there is no place of payment on the instrument, albeit a check or note, the instrument is non negotiable under Article 3 of the UCC.

40. Unless the date of an instrument is necessary to determine a definite time for payment, the fact that an instrument is undated does not affect its negotiability.