please help with BOTH bBbD Aab Subtitle Subtle o@b Styles 9. A transferee who ta

Question

please help with BOTH

bBbD Aab Subtitle Subtle o@b Styles 9. A transferee who takes title to an instrument through a holder in due course acquires the rights of a holder in due course because of the doctrine. a. Close connectedness b. Shelter d. FTC fairness 10. A party who signs an instrument collection guaranteed" a. Is a co-maker of the instrument b. Is an endorser of the instrument c. Must pay if the maker does not pay when the instrument comes due, whether the holder sues the maker on the debt or not. d. is not liable to pay on the instrument until the holder has taken the maker to court and gotten a judgment against the maker that cannot be satisfied

Explanation / Answer

1. According to the shelter principle, a party which can not and does not qualify as a holder in due course with regard to a given negotiable instrument, can acquire the rights of holder in due course, if it obtains the instrument through holder in due course.

b is correct.

2. A party signing the collection guarantee is liable to pay the lender only when the later has approached the court for the default from the debtor and obtained the judgement for outstanding balance that has not been paid or the debtor has become insolvent.

d is correct.

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