Only a negotiable note can be transferred to a holder in due course.

Name: Only a negotiable note can be transferred to a holder in due course.
Brand: Quizplus
Rating: 4.9 (66 reviews)

Question

Quizplus · Accepted Answer

A negotiable note can be transferred to a holder in due course, who will become the legal owner of the note and have the right to enforce payment against the original debtor. Non-negotiable notes do not have this same level of transferability.

Only a Negotiable Note Can Be Transferred to a Holder