WHETHER THE ANSWER IS TRUE OR FALSE. 1. "Personal defenses to liability on a negotiable instrument include lack of consideration, failure of consideration, breach of contract, mistake, misrepresentation and breach of express or implied warranties of merchantability and/or fitness for a particular purpose. 2. The Electronic Fund Transfer Act of 1978 is mainly concerned with privacy rights between the banks, its customers and third parties. 3. A statement in an instrument that payment can be made only out of a particular fund or source renders it non negotiable. 4. An agent is not personally liable on a negotiable instrument if he is authorized to sign and does so in his agent capacity. 5. If a negotiable instrument is not paid by the party expected to pay and the conditions precedent to the liability of a secondary party are satisfied, the secondary party is liable unless he has disclaimed liability or possesses a valid defense to the instrument. 6. A person who accepts an instrument that has been completed without knowing that it was incomplete when issued, can take it as an HDC. 7. When a bank draws a check on itself, the negotiable instrument is called a cashiers check 8. When a series of forgeries by the same wrongdoer occurs , the UCC provides that the customer, to recover for all forged items, must have discovered and reported the first forged check to the bank within sixty calendar days" from receipt of his bank statement. 9. Warranty liability is subject to the conditions of proper presentment, dishonor and notice of dishonor 10 A person whose name is forged on an instrument is liable to pay only a holder in due course the value of the forged instrument. 11. If an ATM fails to operate properly due to electrical failure, one of the defenses a bank make use under the EFT Act is commercial impracticability. 12. A person who purchases a negotiable instrument as part of a bulk sale cannot become an HDC 13. A person may be liable on the basis of warranty even though he or she never signs the negotiable instrument