Under the UCC,a holder in due course is a holder who has given value for the instrument.Which of the following holders have given value for the instrument?
A)Beth promises to paint the neighbor's house in exchange for a promissory note as an advance payment for the job.
B)Steve gives a note and mortgage on his house to his attorney as a retainer to handle his pending divorce.
C)Todd, a newspaper carrier, accepts a properly indorsed two-party check for the past two months of deliveries.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Todd, the newspaper carrier, is the only holder who has given value for the instrument by accepting the check as payment for the past two months of deliveries. Beth receives the promissory note in exchange for a future service, and Steve gives the note and mortgage as a retainer fee, which is not considered giving value for the instrument.

Under the UCC,a Holder in Due Course Is a Holder