Which of the following is a rule that eliminates HDC status with regard to negotiable instruments that arise out of certain consumer credit transactions?
A) FTC HDC rule
B) exclusionary rule
C) imposter rule
D) fictitious payee rule

Question

Quizplus · Accepted Answer

The FTC HDC rule, also known as the Holder in Due Course Rule 12 C.F.R. § 226.52, eliminates HDC status for negotiable instruments arising out of certain consumer credit transactions. It applies to transactions secured by a consumer's principal dwelling, personal, family, or household purposes, and transactions with finance charges exceeding certain limits.

Which of the Following Is a Rule That Eliminates HDC