Asked by Yesenia Gomez on May 17, 2024
Verified
A payee can never be considered a holder in due course.
Holder in Due Course
A person who has acquired a negotiable instrument in good faith and for value, therefore having certain legal protections.
Payee
The individual or entity to whom a check, draft, or promissory note is made payable.
- Comprehend the entitlements and responsibilities of a Holder in Due Course (HDC) along with the safeguards provided for them.
Verified Answer
BB
Brandy BrockMay 24, 2024
Final Answer :
False
Explanation :
A payee can be considered a holder in due course if the payee acquires the instrument under the conditions that meet the requirements for HDC status, such as taking it for value, in good faith, and without notice of any defect.
Learning Objectives
- Comprehend the entitlements and responsibilities of a Holder in Due Course (HDC) along with the safeguards provided for them.