Insofar as the requirements for a given instrument to qualify as negotiable under the UCC
A. The requirements for qualifying as negotiable commercial paper may be satisfied by a statement of the maker or drawer which clearly manifests an intent that the instrument be treated as a negotiable instrument.
B. The maker is prevented from indicating the transaction out of which the instrument arose or the account to be charged without rendering the instrument nonnegotiable.
C. It is impossible to make an instrument negotiable unless the requirements for negotiability under Article 3 (Commercial Paper) are met.
D. The requirements do not preclude an instrument from qualifying as a negotiable instrument despite the fact that there is doubt whether it is a draft or a note.
Answer:D
D is corrent. If doubt exists whether an instrument is a draft or a note, the holder may treat the instrument as either. The instrument will thus qualify as a negotiable instrument.
A is incorrect. A statement of intent cannot make a nonnegotiable instrument negotiable. The information contained on the face of the instrument itself will determine whether the instrument qualifies as negotiable.
B is incorrect. The maker is not prevented from disclosing additional information on the instrument. As long as the information does not condition the payment of the instrument, the instrument remains negotiable. A mere bookkeeping notation would not destroy the negotiability of an instrument. Note that current law now allows a negotiable instrument to limit payment out of a particular fund.
C is incorrect. An instrument may qualify as negotiable even though the requirements of Article 3 are not met. Such an instrument may satisfy the negotiability requirements of Articles 7 (documents of title) or 8 (investment securities) of the Uniform Commercial Code.