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Chapter 23 Negotiation of Commercial Paper

Learning Objectives

After reading this chapter, you should understand the following:

  1. The distinction between transfer and negotiation of commercial paper
  2. The liability of a person who transfers paper
  3. The types of indorsements and their effects
  4. Special problems that arise with forged indorsements

In the previous chapter, we took up the requirements for paper to be negotiable. Here we take up negotiation.