Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 11

Dan Reade obtained a loan to purchase his home from ABN AMRO Mortgage Group, Inc. (AMRO). As part of the transaction, Reade executed a promissory note to AMRO. Over the course of time, AMRO merged with CitiMortgage, Inc. (CitiMortgage), with CitiMortgage as the surviving entity. Reade made some payments on the note, but he defaulted. When CitiMortgage tried to collect, Reade demanded that CitiMortgage produce evidence that the note had been negotiated to CitiMortgage. Did CitiMortgage have to show negotiation in order to collect on the note?