Thomas Caraccia signed a note and mortgage in favor of VirtualBank to obtain funds to buy property in Palm Beach Gardens, Florida. VirtualBank indorsed the note in blank, making it bearer paper, and transferred possession of the note to Bank of America. Bank of America transferred the note to U.S. Bank, which later gave the note back to Bank of America to collect Caraccia’s payments on behalf of U.S. Bank. When Caraccia defaulted on the payments, U.S. Bank filed a suit in a Florida state court against him, seeking to enforce the note and foreclose on the property. Caraccia contended that because the note was indorsed in blank and was not in the physical possession of U.S. Bank, the bank could not enforce it. Could the bank successfully argue that although it did not physically possess the note, it constructively possessed it (exercised legal control over it)? Explain. [Caraccia v. U.S. Bank, N.A., 41 Fla.L.Weekly D476, 185 So.3d 1277 (Dist.Ct.App. 2016)] (See Requirements for Negotiability.)
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