The Society National Bank (Society) agreed in a promissory note to lend U S A Diversified Products, Inc (USAD) up to $2 million in the form of an operating line of credit upon which USAD could make draws of varying amounts The outstanding balance was to be paid on April 30 of the following year USA...

The line of credit is not a negotiable instrument This problem is based on the case Yin v Society Na ...

The Society National Bank (Society) agreed in a promissory note to lend U.S.A. Diversified Products, Inc. (USAD)

Question:

The Society National Bank (Society) agreed in a promissory note to lend U.S.A. Diversified Products, Inc. (USAD) up to $2 million in the form of an operating upon which USAD could make draws of varying amounts. The outstanding balance was to be paid on April 30 of the following year. USAD defaulted on the and Society filed a complaint against USAD. Is the promissory note negotiable? Explain.
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...