Tina gave Zach a cheque for $1000 to pay for a TV.Zach took the cheque to Cash Mart,he endorsed it,and Cash Mart paid him $950.Cash Mart is a holder in due course of a negotiable instrument.

Question

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Since Cash Mart is a holder in due course of a negotiable instrument (the cheque), they have the right to receive payment for it regardless of any claims or defenses that Tina may have against Zach. As such, the fact that they paid Zach $950 for the cheque makes them a holder in due course.

Tina Gave Zach a Cheque for $1000 to Pay for a TV.Zach