Mohammed Najar executed a note payable to Argent Mortgage Company, LLC (Argent), and secured the note with a mortgage on his house. The note included a provision that required Najar

Mohammed Najar executed a note payable to Argent Mortgage Company, LLC (Argent), and secured the note with a mortgage on his house. The note included a provision that required Najar to give the Bank written notice if he wanted to prepay the loan, as well as a “safe harbor” provision stating that if the amount of interest listed were later determined by a court to be usurious, any excess interest collected would be applied to principal. Argent assigned the note to Deutsche Bank National Trust Co. (Bank). Najar failed to make payments on the note, and the Bank began foreclosure on the mortgage. Najar claimed in court that the prepayment and usury clauses on the note were “other undertakings” under the UCC, thus making the note nonnegotiable. Was the note a negotiable instrument?


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