Fact Pattern 26-1B
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to Lou who, in turn, indorses it to Mona, who then in?dorses it to Nat, the present holder.
-Refer to Fact Pattern 26-1B. Nat properly pre?sents the note to Jake for pay?ment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from

Question

Fact Pattern 26-1B 
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note to Lou who, in turn, indorses it to Mona, who then in?dorses it to Nat, the present holder.
-Refer to Fact Pattern 26-1B. Nat properly pre?sents the note to Jake for pay?ment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from

Quizplus · Accepted Answer

Under the principle of transferability, anyone who becomes a holder of a negotiable instrument has the right to enforce payment from any prior endorsers if the instrument is dishonored. In this case, Nat can collect payment from Kim, Lou, or Mona since they are all prior endorsers of the note. However, Nat would need to provide timely notice of dishonor to each of them.