Question

Primary liability is .

A. Liability is when the instrument is signed or issued.
B. Only makers and of instruments are primary liable.
C. It is the maker's promise to that renders the instrument negotiable.
D. The must pay a negotiable instrument according to either its stated terms or terms that were agreed on and later filled in to complete the instrument.

An acceptor is a drawee, such as a(n) , that promises to pay an instrument when it is presented later for payment.

Fill in the blanks with words that would best complete the passage.
A nconditional payees
B. delayed indorsers
C. conditional bank
D. immediate pay
E. acceptors maker

Answer 1

A. Liability is IMMEDIATE when the instrument is signed or issued.

B. Only makers and ACCEPTORS of instruments are primary liable.

C. It is the maker's promise to UNCONDITIONALLY PAY that renders the instrument negotiable.

D. The MAKER must pay a negotiable instrument according to either its stated terms or CONDITIONAL terms that were agreed on and later filled in to complete the instrument.

An acceptor is a drawee, such as a BANK, that promises to pay an instrument when it is presented later for payment.