FOR THE FOLLOWING QUESTIONS, INDICATE WHETHER THE ANSWER IS TRUE OR FALSE.

1."Personal" defenses to liability on a negotiable instrument include lack of consideration, failure of consideration, breach of contract, mistake, misrepresentation, breach of express

or implied warranties of merchantability and/or fitness for a particular purpose.

2.The Electronic Fund Transfer Act of 1978, is mainly concerned with the privacy rights

between banks, its customers and third parties.

3.A statement in a negotiable instrument that payment can only be made out of a

particular fund or source renders it non-negotiable.

4.An agent is not personally liable on a negotiable instrument if he is authorized to sign

and does so in his agent capacity.

5.If a negotiable instrument is not paid by the party expected to pay and the conditions

precedent to the liability of a secondary party are satisfied, the secondary party is liable unless

he has disclaimed liability or possesses a valid defense to the instrument.

6.A person who accepts a negotiable instrument that has been completed without knowing that it was incomplete when issued, can take it as an "HDC".

7.When a bank draws a check on itself, the negotiable instrument is called a cashiers

check or teller's check.

8.When a series of forgeries by the same wrongdoer occurs, the UCC provides that the

customer, to recover for all forged items, must have discoveredand reported the first forged

check to the bank within "sixty calendar days" from receipt of his bank statement.

9.Warranty liability is subject to the conditions of proper presentment, dishonor and

notice of dishonor.

10.A person whose name is forged on a negotiable instrument is liable to pay only a

holder in due course the value of the forged instrument.