Which of the following qualifications renders a person as a holder in due course of a negotiable instrument?
A) if he takes the negotiable instrument for value
B) if he is subject to claims and defenses against the transferor
C) if he is in possession of an instrument issued in his name
D) if he is in possession of an instrument issued in another's name

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code, a person becomes a holder in due course if they take the negotiable instrument for value, in good faith, and without knowledge of any claims or defenses against it. The other options (B, C, and D) do not necessarily guarantee holder in due course status.

Which of the Following Qualifications Renders a Person as a Holder