Question: Sandra Ford signed a note and a mortgage on her home in Westwood, New Jersey, to borrow $ 403,750 from Argent Mortgage Co. Argent transferred

Sandra Ford signed a note and a mortgage on her home in Westwood, New Jersey, to borrow $ 403,750 from Argent Mortgage Co. Argent transferred the note and mortgage to Wells Fargo Bank, N. A., without indorsement. The following spring, Ford stopped making payments on the note. Wells Fargo filed a suit in a New Jersey state court against Ford to foreclose on the mortgage. Ford asserted that Argent had committed fraud in connection with the note by providing misleading information and charging excessive fees. Ford contended that Wells Fargo was subject to these defenses because the bank was not a holder in due course of the note. Was the transfer of the note from Argent to Wells Fargo a negotiation or an assignment? What difference does it make? If Argent indorsed the note to Wells Fargo now, would the bank’s status change? Discuss.

Step by Step Solution

★★★★★

3.37 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A negotiable instrument can be transferred by assignment or by negotiation An assignment is a transfer of rights by contract A transfer by assignment ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

311-L-B-L-N-I (282).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

What difference does it make if a nonqualified stock option has a readily ascertainable FMV on the grant date?

What is a relevant market? What difference does it make when determining peoples pay?

What difference does it make for income tax purposes whether an intangible asset is (1) acquired in connection with a business acquisition, (2) acquired by the purchase of an individual asset (e.g.,...

Negotiation. Sandra Ford signed a note and a mortgage on her home in Westwood, New Jersey, to borrow $403,750 from Argent Mortgage Co. Argent transferred the note and mortgage to Wells Fargo Bank,...

Business Case Problem with Sample Answer Negotiation. Sandra Ford signed a note and a mortgage on her home in Westwood, New Jersey, to borrow $403,750 from Argent Mortgage Co. Argent transferred the...

Below is information regarding Jean Smith's 2015 income and expenses. Jean is unmarried with no dependents. Prepare her Schedule A for Itemized Deductions for 2015. A pdf of the IRS Draft Schedule A...

IM Me with price and any questions SIGNATURE PROJECT ACC432A June 2014 WARDENS' 2013 TAX RETURN CCH BOOKLET TITLED: 2014 Edition Individuals', Corporation, partnership, and Fiduciary Fact Patterns...

I need help on the 1065 partnership return. Its the one with Bilco Products. Thank you for whoever does. :) 2012 Edition Individuals', Corporation, Partnership, and Fiduciary Fact Patterns and Blank...

Question MC 1 (43 minutes) [Chapters 2 to 8] Determine the single most appropriate response to the following questions. 1)Carla lives in Detroit, Michigan, USA. She commutes daily to Windsor,...

Cash LO2 BRIEF EXERCISE 10.1 Jacobs Company borrowed $1,000,000 on a one-year, percent note payable from the local bank on 1 April. Interest was paid quarterly, and the note was re- paid one year...

Read the article and discuss the impact of adverse selection on private health insurance. How was the problem of adverse selection in health insurance solved by many nations? What were the three...

Complete the following table. (Express the tax on the given assessed valuation in cents or dollars and cents. Round up any remainder.) Total assessed value $87,460,000 Tax on Total expenses...

True or false. We are given a connected graph G with costs c ( i , j ) on edges. Assume all costs are positive integers and that there are no ties. If all edge costs are multiplied by 1 0 , the...

Simplifications Can the simplified formulae provided in this chapter work for every valuation problem? Explain your answer with an illustration.

Go to this texts Web site at academic. cengage.com/blaw/clarkson and select Chapter 33. Click on Video Questions and view the video titled Employment at Will. Then answer the following questions. (a)...

Why might telecommuting employees sometimes accept being wrongly classified as executives or professionals under the overtime-pay requirements and thus be exempt from overtime pay?

Methods of variable selection like (Forward,backward, step-wise selection) can be quick and cheap to achieve but can present some issues. Describe 5 issues that arise with these methods of variable...

4. Construct a confidence interval around the sample mean X = 25 for the following conditions: a. N = 25, s = 15, 95% confidence level b. N = 25, s = 15, 90% confidence level c. X = 4.5, = 0.05, df =...

1. need answers for a,b,c,d Tony Begay at Saguaro Funds. Torry Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, on the British pound ( f ) to speculate on...