Legal Question in Consumer Law in California

promissory notes

Hill,executed a promissory note in favor of Alex Co or Bearer as part of a licensing agreement between Alex & Hill.A copy of the note is shown below.The Note was $4,400 and was payable almost 1� year following execution.Alex transferred the note to SMI for $3,000.SMI in turn,gave the note to Auto in exchange for repairs that were done on several of SMI�s cars.Auto then gave the note to River,a wholesale of auto parts,as security for payment of $4,400 auto parts shipment that River was giving to Auto.When River accepted the note as collateral for Auto obligation,River was aware that maker of the note, Hill,was claiming the note was unenforceable as Alex had breached the license agreement under which Hill had given the note.At the time that both SMI & Auto received the note,they were unaware of the dispute between Hill and Alex.Auto became insolvent and was unable to satisfy its obligation to River.On the maturity date of the Note,River demanded Hill pay $4,400,but Hill has refused-Your personalcomments�a)The note is non-negotiable as it references the license agreement and is not payable at a definite time or on demand-b)Hill can raise alleged breach by Alex as a defense to payment to River.

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