Under the Revised Article 3 of the Uniform Code, which of the following is true if the maker of a note provides that payment must come out of a designated fund?
a. This is allowed even though the maker is not personally obligated to pay.
b. Since the instrument is not based on the general credit of the maker, the instrument is not negotiable.
c. The promise to pay is conditional; therefore, the note is not negotiable.
d. The instrument is not negotiable if the designated fund has insufficient funds.
Answer: A
CPA Exam
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