To borrow money to finance the start-up of his business,Bob executes an instrument in favor of City Bank.For the instru-ment to be negotiable,the signature must be
A)anywhere on the instrument.
B)anywhere on the lower half of the instrument only.
C)in the lower left-hand corner of the instrument only.
D)in the lower right-hand corner of the instrument only.

Question

Quizplus · Accepted Answer

The negotiability of an instrument is determined by the presence of certain characteristics, such as being in writing, signed by the maker or drawer, and containing an unconditional promise or order to pay a fixed amount of money. The Uniform Commercial Code (UCC) does not specify where the signature must be placed on the instrument to be negotiable, as long as it is present and attributed to the appropriate party. Therefore, any signature placement or position on the instrument would make it negotiable.

To Borrow Money to Finance the Start-Up of His Business,Bob