BUSINESS LAW 1-
Sally had a checking account at Wayne Bank. Wayne Bank sent her special checks that she could use
to draw on a line of credit (short term loan). When Sally used these checks, Wayne Bank did not
take money our of her checking account; instead, it treated the checks as loans and charged her
interest. The interest rate was not apparent from the face of the check. When Sally wrote checks,
Wayne Bank sold them to Wolfe. Were the checks negotiable instruments? Explain your answer.

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lonny53 · Accepted Answer

No, the checks were Negotiable Instruments. The checks did not meet the requirement of unconditionality. What are the principles of negotiability?The six principles of negotiability are as follows:It must be documented in writing.The creator or drawer must sign it.It must be an unconditional commitment or payment order.It must be for a certain monetary sum.It must be paid on demand or at a specific time.Unless it is a check, it must be made payable to the order or bearer.In this case, the check did not meet the requirement of unconditionality. They served her the check based on the condition or terms of a loan.A negotiable instrument is defined by the UCC as an unconditioned document that promises or directs the payment of a specified amount of money. The two types of instruments are drafts and notes. A draft is a document that directs the payment of money. A check is an example.Technically, they are also called convenience checks.A convenience check can be used in the same way as a personal check, but when you write one, the money is deducted from the credit card's line of credit. If you wish to use a convenience check to make a purchase, simply make a check out to the merchant for the amount of your transaction and sign it.Learn more about Convenience Checks:https://brainly.com/question/10733776#SPJ1

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