The imposter rule eliminates HDC status with regard to negotiable instruments that arise out of certain consumer credit transactions.

Question

Quizplus · Accepted Answer

The imposter rule does not specifically eliminate holder in due course (HDC) status in the context of consumer credit transactions. Instead, it addresses situations where a fraudster (the imposter) induces the issuance of a negotiable instrument to a third party, potentially affecting the rights and liabilities of the parties involved.

The Imposter Rule Eliminates HDC Status with Regard to Negotiable