App Corporation obtains a loan from Backer Bank and signs a note for the amount. For a certain price, the bank transfers the note to Credit Company. Promissory notes are commonly assigned, negotiated, or transferred from one party to another. This is possible because

A) as an issuer of a note, a bank commits to paying the stated amount.
B) assignment does not affect the maker's obligation to pay the note.
C) a buyer of the note becomes both the drawer and the payee.
D) a bank is both the maker of the note and the drawee.

Question

sagar shukla · Accepted Answer

Final Answer : B, Explanation :  Assignment of a promissory note does not change the original terms of the note or the maker's obligation to pay the amount due to the new holder of the note.

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