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Quick law question before my final!! (UCC Article 3)

Discussion in 'Other Off Topic Forum' started by KennyH, Dec 18, 2003.

  1. KennyH

    KennyH F1 Veteran
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    Aug 13, 2001
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    Kenny
    I am not 100% clear on the following after reviewing my text book and notes:

    - Holder in due course and the holder in recourse- can someone explain basically what they are and the parties involved?

    -Guarantor and collection guarenteed?

    Thank you very much!
     
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  3. WILLIAM H

    WILLIAM H Three Time F1 World Champ

    Nov 1, 2003
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    Kenny, dont you have a law dictionary ? :) Maybe there is 1 online. I'd help you but I didnt see those terms this semester
     
  4. KennyH

    KennyH F1 Veteran
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    Thanks guys, so I know understand:

    holder in due course
    n. one holding a check or promissory note, received for value (he/she paid for it) in good faith and with no suspicion that it might be no good, claimed by another, overdue or previously dishonored (a bank had refused to pay since the account was overdrawn). Such a holder is entitled to payment by the maker of the check or note.

    guarantor
    n. a person or entity that agrees to be responsible for another's debt or performance under a contract if the other fails to pay or perform.

    However, I'm still struggling with "collection guaranteed", and "holder in due recourse"-- now I'm stuck on an "accomodation maker"? Sorry for the inconvenience!

    Thank you again!
     
  5. wax

    wax Four Time F1 World Champ
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    Are you DEScribing law or prostitution advertisements?
     
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  7. JimSchad

    JimSchad Guest

    Holy crap I about fell asleep reading that, but the headache it gave me kept me awake. Glad you guys do the lawyer'in and not me!
     
  8. KennyH

    KennyH F1 Veteran
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    Well if anyone cared, it SEEMS an accomodation maker is a co-signer, basically someone who signs the back of anothers check and is liable if the payment doesn't go through. A guarantor is a very similar but has more protection against being liable and then an accomodation maker.

    A holder in due course cannot be defended against personal defenses (i.e. fraud in the inducement), only real defenses (i.e. fraud in fact).

    Enjoy! If I'm wrong, please correct me, even if it's after the test...
     
  9. TimN88

    TimN88 F1 Veteran

    Jun 12, 2001
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    kenny, if the test is over, dont sweat it. you cant chage anything now. At least thats what i say. I guess im that one kid who always goes back to the textbook after a test to see if i did a problem right.
     
  10. ernie

    ernie Two Time F1 World Champ
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    Speaking of the UCC. I have heard of people filling some kinda of paper work that makes them exempt from pay up the milk money to Uncle S.
     
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