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

41. A notation on a check that it is "non negotiable"or"not governed by Article 3" has no effect on the checks negotiability.

42. Federal Trade Commission Rule 433 requires a statement in a consumer credit note to the effect that a holder or transferee of the note takes it free of whatever claims or defenses the consumer may have had or can assert against the original payee.

43.In accordance with Article 3 of the UCC, the negotiable instrument must be signed on its face and more specifically on its lower right side to be effective.

44. A promissory note secured by a mortgage is a "mortgage note"while a note secured by personal property is a "collateral note".

45. Once an instrument qualifies as a negotiable instrument, the form of endorsement will have no effect on the character of the underlying instrument.

46. Secondary contractual liability on a negotiable instrument is similar to that of a guarantor of a simple contract, except that a drawer is not secondarily liable but primarily liable on a cashier's check or any other draft on which the drawer is also the drawee.

47. If a draft or check is a payable at a bank or financial institution, improper presentment or notice will relieve the drawer from secondary contractual liability only when the drawee-bank or financial institution is insolvent.

48. Any necessary notice of dishonor must be given by a bank by midnight of the next banking day after receipt and notice by any party other than a bank must be given within seven days

following the day on which the person receives notice of dishonor.

49. A party must sign his or her name in full in order to be bound by the terms of a negotiable instrument.

50. Discharge from liability on a negotiable instrument can arise from payment, cancellation, reacquisition of the instrument or surrender of collateral without consent.