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

Name: Only a nonnegotiable note can be transferred to a holder in due course.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A negotiable note can also be transferred to a holder in due course, as the concept of "holder in due course" specifically applies to negotiable instruments, which include negotiable notes that meet certain requirements allowing them to be freely transferable.

Only a Nonnegotiable Note Can Be Transferred to a Holder