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Rhonda Scott
on Nov 27, 2024

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A note made in exchange for funds that contains an acceleration clause is not negotiable because the exact value of the note cannot be ascertained.

Acceleration Clause

(1) A clause in an installment contract that provides for all future payments to become due immediately on the failure to tender timely payments or on the occurrence of a specified event. (2) A clause in a mortgage loan contract that makes the entire loan balance become due if the borrower misses or is late making monthly mortgage payments.

Negotiable

A term referring to a document or financial instrument that can be transferred from one party to another, providing the holder with certain rights.

Exchange

A marketplace or platform where goods, services, or financial instruments are traded between parties.

  • Comprehend the impact of terms and conditions on the negotiability of an instrument.
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LP
Leonel PabloDec 03, 2024
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