A "holder" of order paper can be described as
A)the payee.
B)any person in possession of the instrument.
C)any person in possession of the instrument if it is payable to or indorsed to him.
D)the first party to come in contact with a negotiable instrument.

Question

Quizplus · Accepted Answer

A "holder" of order paper is defined as any person in possession of the instrument if it is payable to or indorsed to him. This means that the payee (A) is considered a holder, but so are other individuals who have possession of the instrument and have been named as payee or indorsee. Choice B is too broad and does not take into account the requirements of being named as payee or indorsee. Choice D is incorrect as it does not consider the necessary criteria to be considered a holder.

A "Holder" of Order Paper Can Be Described as