Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 10

Turman executed a deed of trust note for $107,500 payable to Ward's Home Improvement, Inc. (Ward's). The note was in consideration of a contract for Ward's to build a house on Turman's property. On the same day, Ward's executed an assignment of the note to Robert Pomerantz for which Pomerantz paid Ward's $95,000. Although the document uses the word ''assignment,'' no notation or indorsement was made on the note itself. Is Pomerantz a holder? Is Pomerantz a holder in due course? Explain.