Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of Bath. Bath indorsed the note to Whiltshire, to whom Bath owed Php500,000.00. If Westminster has no defense at all against Bath, for how much may Whiltshire collect from Westminster? a. None, as Whiltshire's remedy is to run after his debtor, Bath. b. Php300,000.00, as he is a holder for value to the extent of the difference between Bath's debt and the value of the note. c. Php500,000.00, as he is a holder for value to the extent of his lien. d. Php800,000.00, but with the obligation to hold Php500,000.00 for Bath's benefit.
Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of Bath. Bath indorsed the note to Whiltshire, to whom Bath owed Php500,000.00. If Westminster has no defense at all against Bath, for how much may Whiltshire collect from Westminster? a. None, as Whiltshire's remedy is to run after his debtor, Bath. b. Php300,000.00, as he is a holder for value to the extent of the difference between Bath's debt and the value of the note. c. Php500,000.00, as he is a holder for value to the extent of his lien. d. Php800,000.00, but with the obligation to hold Php500,000.00 for Bath's benefit.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 2CE
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Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of Bath. Bath indorsed the note to Whiltshire, to whom Bath owed Php500,000.00. If Westminster has no defense at all against Bath, for how much may Whiltshire collect from Westminster?
a. None, as Whiltshire's remedy is to run after his debtor, Bath.
b. Php300,000.00, as he is a holder for value to the extent of the difference between Bath's debt and the value of the note.
c. Php500,000.00, as he is a holder for value to the extent of his lien.
d. Php800,000.00, but with the obligation to hold Php500,000.00 for Bath's benefit.
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