This topic contains a solution. Click here to go to the answer

Author Question: A payee has no rights in an instrument until: A) the drawer or the maker has delivered the ... (Read 143 times)

anjilletteb

  • Hero Member
  • *****
  • Posts: 569
A payee has no rights in an instrument until:
 A) the drawer or the maker has delivered the instrument to the payee.
 B)an acceptor has been established.
 C)an accommodation party has signed the instrument.
 D)a guarantor has signed the instrument.

Question 2

A construction lender had an obligation to loan 250,000 to a builder/mortgagor. The mortgage was recorded upon execution of the note. The funds were to be dispersed to the mortgagor as follows: 20 percent when the foundation was set, 20 percent when the building was roofed in, 20 percent when the interior plaster was set, 20 percent when the certificate of occupancy was issued, and 20 percent 30 days later. Will the lender have priority at the time of recording or at the time and amount of each advance?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

chereeb

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

A

Answer to Question 2

The Court held that so long as reasonable construction standards and rules applied, the lender was obligated and the priority goes back to the time of recording. Larson Cement Stone Co. v. Redlem Realty Co., 137 N.W.2d 241 (1965).




chereeb

  • Sr. Member
  • ****
  • Posts: 326

 

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

For a complete list of videos, visit our video library