Asked by MaoMony Udong on May 29, 2024
Verified
When a note is lost, impaired, or destroyed, the owner loses the right to be paid its value, even if its existence can be proved with a copy.
Lost
Refers to the status of an item or entity that cannot be located or has gone missing.
Impaired
Diminished in quality, value, or strength; often used in reference to assets, faculties, or abilities.
Destroyed
Refers to something that is completely ruined or spoiled.
- Explain the consequences of discrepancies or loss of negotiable instruments.
Verified Answer
DA
Débora AssumpçãoJun 02, 2024
Final Answer :
False
Explanation :
The Uniform Commercial Code (UCC) allows for the enforcement of lost, stolen, or destroyed negotiable instruments, such as notes, provided that the owner can prove the instrument's terms and their right to enforce it. This means the owner does not lose the right to be paid its value if they can prove its existence and their ownership.
Learning Objectives
- Explain the consequences of discrepancies or loss of negotiable instruments.