commercial paper

writing, signed by maker, unconditional, promise or order to pay, fixed amount of money, no other unauthorized promise, on demand or at a definie time (to order or bearer)

possession, good title, good faith, w/o knowledge of issues

• collateral
• confess a judgment
• waive legal rights

• purchasing instrument at judicial sale
• acquiring by taking over estate
• acquired as part of bulk transaction

• Forgery
• Fraud in factum
• Alteration
• Incapacity
• Illegaligt
• Duress
• Discharge in insolvency (BK)
• Suretyship
• Stat Lit

• transferee enjoys defenses of HDC
• exception: doesnt apply if fraud/illegality affecting instrument

• presentment (30 day limit)
• dishonor
• notice of dishonor

"without recourse" you get out of liability

• good title
• genuine signatures
• no material alteration
• no defenses
• no knowledge of insolvency proceedings

bank

check maker

check recipient

acceptance by bank discharges drawer

bank must pay checks that are properly payable, must not pay those not properly payable

• valid if customer identified item & gave bank notice
• oral - 14 days
• written 6-mos

6 mos or older, bank can cash if in good faith

only valid if gives bank notice and IDs the item

payable until bank knows of death. 10 day window

precludes asserting properly payable rule (ratified forgery or alteration)

• impostors: valid eg im tiger woods
• valid if EE responsible for check writing who forges signatures

• check signed blank - on the hook
• late notice to bank for forgery etc - on the hook

• ratification of forgery
• agency law
• estoppel