Heather borrowed $5,000 from James and signed a promissory note payble to James on December 31, 2020, with interest at a rate of 5% per annum.  James negotiated the note to Linda, as payment for an oil painting that Linda sold to James.  Before the note is due, Heather filed bankruptcy and her obligations to pay according to the terms of the note were discharged.  Does Linda have a cause of action against Heather and/or James? Explain.

An indorsement is required to negotiate order paper; but is not required to negotiate bearer paper.

Increasing the dollar amount of an instrument is considered a material alteration, which is a real defense to enforcement of a negotiable instrument.

An indorsement is required to negotiate order paper; but is not required to negotiate bearer paper.

The primary benefit of a negotiable instrument is that it can be used as a substitute for money.

The drawee of a check is the financial institution where the drawer has an account.

A draft is an unconditional promise by the drawer to pay the drawee a fixed amount of money.

A promissory note that does not meet the requirements of negotiability is not enforceable.

Presentment is a demand for payment of a negotiable instrument upon the maker, drawee or other payor.

The transfer of a negotiable instrument by a person other than the issuer to the holder is