Asked by Hector Villagomez on May 03, 2024

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Who is primarily liable on a note?

A) The maker.
B) The indorsers.
C) The drawee bank.
D) The holder.

Maker

The individual or entity that creates or signs a negotiable instrument, committing themselves to pay a specified amount of money to the payee or holder.

Primarily Liable

The primary obligation or responsibility to fulfill a debt or legal duty before others are considered liable.

Indorsers

Individuals who sign a negotiable instrument, other than as its maker, drawer, or acceptor, thereby assuming liability to future holders.

  • Discern the fine distinctions in the obligations of creators, signatories, and guarantors.
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ZK
Zybrea KnightMay 06, 2024
Final Answer :
A
Explanation :
The maker is the person who originally signs and creates the note, making them primarily liable for its repayment. Indorsers and the drawee bank may also be liable, but only secondarily or conditionally. The holder is simply the recipient of the note and does not have any liability for its repayment.