Asked by Dominique Handy on May 12, 2024

verifed

Verified

Which of the following sections of the Uniform Commercial Code establishes the four requirements for becoming a holder in due course?

A) 1-202
B) 2-302
C) 2A-302
D) 3-302
E) 4-202

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.

Uniform Commercial Code

A comprehensive set of laws that governs commercial transactions in the United States, aiming to standardize and simplify the process across state lines.

Requirements

Needs or conditions that must be met or complied with, often specified in a contract or by a product's design.

  • Ascertain the qualifications required for a party to become recognized as a holder in due course.
verifed

Verified Answer

KW
Khyati WadhwaMay 13, 2024
Final Answer :
D
Explanation :
To be considered a holder in due course (HDC),a party must meet four requirements regarding the taking of the instrument.These requirements are established in Uniform Commercial Code Section 3-302.