The __________ requirement is particularly important to obtaining HDC status because it separates innocent holders from those who know or should know that the negotiable instrument is defective or fraudulent in some way.
A) with notice
B) without notice
C) promise
D) future promise

Question

Quizplus · Accepted Answer

The "without notice" requirement is crucial for obtaining Holder in Due Course (HDC) status, as it ensures that the holder was unaware of any defects or fraud associated with the negotiable instrument at the time of acquisition.

The __________ Requirement Is Particularly Important to Obtaining HDC Status