Asked by Diana Gasparyan on Jun 15, 2024
Verified
David makes and delivers a promissory note for $500 to the order of Kerry, who indorses the note and delivers it to Stan in payment of an outstanding debt Kerry owes him. Stan has given value as far as the Code requirements for a holder in due course.
Promissory Note
A financial document in which one party promises to pay another party a specific sum of money on a specified date or on demand.
Code Requirements
The standards and regulations set forth in legal codes that must be adhered to in specific contexts, such as building or manufacturing.
Holder in Due Course
Refers to a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims that could be asserted by prior parties.
- Understand the concept of a holder in due course and the requirements for becoming one.
Verified Answer
LM
Lesley MartinezJun 20, 2024
Final Answer :
True
Explanation :
Stan has given value by accepting the promissory note in payment of an outstanding debt, which meets the Uniform Commercial Code's requirements for a holder in due course.
Learning Objectives
- Understand the concept of a holder in due course and the requirements for becoming one.