Vex Corp.executed a negotiable promissory note payable to Tamp, Inc. The note was collateralized by some of Vex's business assets. Tamp negotiated the note to Miller for value. Miller endorsed the note in blank and negotiated it to Bilco for value. Before the note became due, Bilco agreed to release Vex's collateral. Vex refused to pay Bilco when the note became due. Bilco promptly notified Miller and Tamp of Vex's default. Which of the following statement is correct?
a. Bilco will be unable to collect form Miller because Miller's endorsement was in blank.
b. Bilco will be able to collect from either Tamp or Miller because Bilco was a holder in due course.
c. Bilco will be unable to collect from either Tamp or Miller because Bilco's release of the collateral.
d. Bilco will be able to collect from Tamp because Tamp was the original payee.
Answer: C
Tax
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