Which of the following is not a requirement for becoming a holder in due course?

A) The party must be a holder of a complete and authentic negotiable instrument.
B) The holder must take the instrument for value.
C) The holder must take the instrument in good faith.
D) The holder must take the instrument without notice of defects.
E) The holder must either pay for the instrument or receive it as a gift.

Negotiable Instrument

An official document certifying the payment of a particular sum of cash, either to be paid on demand or at an agreed-upon time, with the payer's name mentioned in the document.

Good Faith

The honest intention to act without taking an unfair advantage over another party, typically implied in agreements and transactions to ensure fairness and integrity.

Defects

Imperfections or faults in a product or structure that may affect its usability, safety, or function.