A holder cannot become a holder in due course to an instrument that is forged or altered.

Name: A holder cannot become a holder in due course to an instrument that is forged or altered.
Brand: Quizplus
Rating: 4.9 (64 reviews)

Question

Quizplus · Accepted Answer

A holder in due course must take the instrument in good faith and without knowledge of any defects or irregularities, including forgery or alteration. Therefore, if an instrument is forged or altered, the holder cannot become a holder in due course.

A Holder Cannot Become a Holder in Due Course to an Instrument