1.

Among the following is not a condition to qualify one as a holder in due cour se: - that there was no infirmity in the instrument nor defect in the title of the p erson negotiating it. (notice) 2. Which of the following is not a personal or equitable defense? fraud in factum (real defense) 3. The maker of a promissory note warrants: Both a) that he will pay it according to its tenor b)the existence of the payee and his capacity to endorse 4. M executed a promissory note worded as follows, I promise to pay bearer X the sum of P100,000. (Sgd M), the promissory note is: not a negotiable instrument. 5. An acceptor is bound by the following warranties (general indorser) except: -that he will pay the instrument according to its tenor. 6.Any alteration which changes the following shall be deemed material except: (none of the above) date, sum payable, time and place for payment, number or the realtions of the pa rties 7. A forged siganture is wholly inoperative and no right to retain the instrumen t or give a discharge therefore or to enforce payment thereof against any party thereto can be acquired through or under such siganture. -GENERALLY TRUE 8. Which of the following instruments is not negotiable for the reason that the sum is not certain? a. Pay to B or order P1,000 in installment. 9. The validity and negotiable charcter of an instrument are not affected by the following factors except: -designates a particular FUND out of which payment is to be made 10. Which of the following is not a warranty of a person negotitating an instrum ent by DELIVERY or QUALIFED INDORSMENT? - that the isntrument at the time of the indorsement is valid and subsisting.