Author Question: The primary party on a draft is the drawee, assuming that the drawee has accepted the draft. ... (Read 155 times)

urbanoutfitters · **on:** Jun 24, 2018

The primary party on a draft is the drawee, assuming that the drawee has accepted the draft.
Indicate whether the statement is true or false

Question 2

Barnes Escrow services is handling the closing of a property purchase by Gramercy Stables, Inc A contractor for the seller, Blue Grass Stables, has just completed the construction of a horse barn on the property. The escrow instructions for the two parties requires that Barnes obtain a lien release from the contractor. On the day before closing, the contractor is out of the country and Barnes is unable to obtain a signed release, but has oral assurance from the contractor that he has received payment in full. Barnes proceeds with the closing because the locked interest rate for Gramercy expires in two days. Barnes:
A)Has violated the terms of the escrow.
B)Has acted reasonably given the circumstances related to the loan rate.
C)Can proceed with the closing if the Barnes employee who talked with the contractor provides a sworn statement of the contractor's assurances.
D)Has discretion on closing when the parties' interests are affected.