LAW ON NEGOTIABLE INSTRUMENT

1. Heesung bought a motor car payable in installments from Automotive Company for P300,000. She made a down payment of P50,000 and executed a promissory note for the balance. The company subsequently indorsed the note to Reliable Finance Corporation which financed the purchase. The Promissory note reads: " for value received, I promise to pay Automotive Company or order at its office in ABC City, the sum of P250,000.00 with interest at 12% per annum, payable in equal monthly installment of P25,000 monthly for 10 months starting September 30,2011." ABC City, September 12,2011. (Sgd) Perla Pay to the order of Reliable Finance Corporation. Automotive Company By: (Sgd) Manager Because Heeseung defaulted in the payment of her installments, Reliable Finance Corporation initiated a case against her for a sum of money. Heeseung argued that the promissory note is merely an assignment of credit, a non- negotiable instrument open to all defenses available to the assignor and therefore, Reliable Finance Corporation is not a holder in due course. Is the promissory note a mere assignment of credit or a negotiable instrument? Why