Lucy is the maker of a $1,000 promissory note in favor of Milo.Milo indorses the note to Nim who,in turn,indorses it to Opie,the present holder.If the note is dishonored,the party entitled to re?cover pay?ment from Nim is
A)Lucy.
B)Milo.
C)Opie.
D)no one.

Question

Quizplus · Accepted Answer

When a promissory note is indorsed to a new holder, the new holder becomes the "holder in due course" and has the right to demand payment from the previous indorsers (assuming the note is dishonored). In this case, Opie is the current holder of the note and therefore has the right to demand payment from Nim. Lucy and Milo are no longer involved in the transaction since they have already indorsed the note to the next holder.

Lucy Is the Maker of a $1,000 Promissory Note in Favor