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An indorsement "Pay to Jones Construction Company upon completion of the job at No. 10 Park Place" is ineffective under Revised Article 3; the indorsee can enforce the instrument.
Revised Article 3
refers to updates or modifications made to Article 3 of a specific statute or code, which often deals with negotiable instruments like checks and promissory notes.
Indorsement
The act of signing the back of a negotiable instrument, such as a check, thus transferring the rights to another party.
Indorsee
A person or entity to whom the rights under a negotiable instrument, such as a check or promissory note, have been legally transferred.
- Achieve insight into the function and effects of indorsements, considering special, blank, and restrictive versions.
- Comprehend the rights and defenses available to a holder in due course vs. a regular holder.
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Learning Objectives
- Achieve insight into the function and effects of indorsements, considering special, blank, and restrictive versions.
- Comprehend the rights and defenses available to a holder in due course vs. a regular holder.
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