Jeff's grandmother is the payee of a promissory note for $7,500.Jeff's grandmother gives Jeff the note for his sixteenth birthday.Jeff is
A)an HDC.
B)not an HDC,because he received the note as a gift.
C)not an HDC,because he is a minor.
D)not an HDC,because the note was for less than $10,000.

Question

Quizplus · Accepted Answer

Jeff is not a holder in due course (HDC) because he received the note as a gift, which means he did not give value for it, a requirement for HDC status.

Jeff's Grandmother Is the Payee of a Promissory Note for $7,500.Jeff's