A person who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or to his order, or to bearer, or in blank is referred to as a(n) ________.
A) holder
B) holder in due course
C) assignor
D) assignee

Question

Quizplus · Accepted Answer

A person who possesses a negotiable instrument (such as a check) that is made payable to them or made payable to bearer (meaning whoever has possession of the instrument) is known as a holder. A holder can negotiate the instrument (i.e. transfer ownership of the instrument) to someone else by either endorsing it or delivering it to the new holder. However, the holder may not necessarily be considered a holder in due course unless they meet certain criteria specified by law.

A Person Who Is in Possession of a Negotiable Instrument