When does a forgery prevent a holder from qualifying as a holder in due course?
A) never
B) if there was apparent evidence of the forgery
C) only if the forgery involved a signature
D) only if the forgery involved the price of goods
E) All forgeries prevent a holder from qualifying as a holder in due course.

Question

Quizplus · Accepted Answer

A holder can still qualify as a holder in due course even if the instrument was forged, but if there was apparent evidence of the forgery, such as a different signature or altered terms, the holder could not be considered a holder in due course.

When Does a Forgery Prevent a Holder from Qualifying as a Holder