Asked by Rachel Romero on Jul 15, 2024
Verified
Which of the following is not a requirement to be a holder in due course?
A) The holder must take the instrument for value.
B) The holder must take the instrument in good faith.
C) The holder must ensure through all reasonable means that the instrument has not been altered.
D) The holder must take the instrument without notice of any claim of a property or possessory interest in it.
Holder In Due Course
A person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original issuer or transferrers.
Altered
Changed or modified, often referring to a document that has been tampered with or adjusted in some way.
Possessory Interest
A right or interest in property that allows the holder physical control or occupancy of the property.
- Understand the obligations and legal impacts connected to being recognized as a holder or holder in due course.
- Understand the principle of value and the principle of good faith within the realm of negotiable instruments.
Verified Answer
Learning Objectives
- Understand the obligations and legal impacts connected to being recognized as a holder or holder in due course.
- Understand the principle of value and the principle of good faith within the realm of negotiable instruments.
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