Fact Pattern 27-1
Chuck is the maker of a $200,000 promissory note payable to Investors Corporation. Investors indorses the note to Equity Lenders, which in turn indorses it to Select Holdings LLC, which then indorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1. Suppose that Select Holdings pays Global Bank on the note. With timely notice to the proper parties, Select Holdings may then collect payment on the note from
A) Chuck, Investors, or Equity Lenders.
B) Chuck or Investors only.
C) Equity Lenders only.
D) no one.

Question

Fact Pattern 27-1
Chuck is the maker of a $200,000 promissory note payable to Investors Corporation. Investors indorses the note to Equity Lenders, which in turn indorses it to Select Holdings LLC, which then indorses it to Global Bank, the present holder.
-Refer to Fact Pattern 27-1. Suppose that Select Holdings pays Global Bank on the note. With timely notice to the proper parties, Select Holdings may then collect payment on the note from​
A) ​Chuck, Investors, or Equity Lenders.
B) ​Chuck or Investors only.
C) ​Equity Lenders only.
D) ​no one.

Quizplus · Accepted Answer

Select Holdings, as the immediate previous indorser, can still enforce the note against any prior indorsers, including Chuck, Investors, or Equity Lenders, if it gives timely notice of dishonor to those parties.

Fact Pattern 27-1 Chuck Is the Maker of a $200,000 Promissory Note Payable