Name: ___________________________- Date: ____________________

________1. A memorandum check is an order to the drawee bank to pay.

________2. A restrictive indorsement constitutes the indorser a mere assignor of the title to the instrument.
________3. A restrictive indorsement which vests title to in the indorsee in trust for another person renders the
instrument to become non-negotiable.
_______4. Where such foreign bill of exchange is dishonored and no notice of dishonor is given, the drawer and all
indorsers are discharged.
_______5. The maker is a person secondarily liable on the instrument.
_______6. Where an indorsement is not necessary to his title, he may strike out the same.
_______7. Where a negotiable instrument is indorsed conditionally, the person liable on the instrument may disregard
the condition and legally pay the same.
_______8. Where an indorsement is not dated, it is presumed to have been made before the instrument became
overdue.
_______9. An instrument negotiable in origin continues to be negotiable unless restrictively indorsed or discharged by
payment.
_______10.Where a bill of exchange is paid by the drawee or acceptor, it considered as discharged by payment.
_______11.A negotiable instrument may be legally transferred by assignment, negotiation and by operation of law.
_______12.Under certain circumstances, a protest may be made by a person who isnot a notary public.
_______13.It is legally possible for a person to be both a holder in due course and a non-holder in due course with
respect to the same negotiable instrument.
_______14. The drawee is not a regular party to the bill of exchange.
_______15. Discharge of a prior party is a mode of discharging the instrument.

Name: ___________________________- Date: ____________________

________1. A memorandum check is an order to the drawee bank to pay.

________2. A restrictive indorsement constitutes the indorser a mere assignor of the title to the instrument.
________3. A restrictive indorsement which vests title to in the indorsee in trust for another person renders the
instrument to become non-negotiable.
_______4. Where such foreign bill of exchange is dishonored and no notice of dishonor is given, the drawer and all
indorsers are discharged.
_______5. The maker is a person secondarily liable on the instrument.
_______6. Where an indorsement is not necessary to his title, he may strike out the same.
_______7. Where a negotiable instrument is indorsed conditionally, the person liable on the instrument may disregard
the condition and legally pay the same.
_______8. Where an indorsement is not dated, it is presumed to have been made before the instrument became
overdue.
_______9. An instrument negotiable in origin continues to be negotiable unless restrictively indorsed or discharged by
payment.
_______10.Where a bill of exchange is paid by the drawee or acceptor, it considered as discharged by payment.
_______11.A negotiable instrument may be legally transferred by assignment, negotiation and by operation of law.
_______12.Under certain circumstances, a protest may be made by a person who isnot a notary public.
_______13.It is legally possible for a person to be both a holder in due course and a non-holder in due course with
respect to the same negotiable instrument.
_______14. The drawee is not a regular party to the bill of exchange.
_______15. Discharge of a prior party is a mode of discharging the instrument.