Lindsey, an accountant for Madison & Monroe, acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey acquires the status of an HDC when she
A)acquires possession of the instrument.
B)promises to pay the face value of the instrument.
C)pays the face value of the instrument.
D)transfers the instrument to another party.

Question

Lindsey, an accountant for Madison & Monroe, acquires a negotiable instrument from Norma by promising to pay its face value in thirty days. Lindsey acquires the status of an HDC when she​
A)acquires possession of the instrument.
B)promises to pay the face value of the instrument.
C)pays the face value of the instrument.
D)transfers the instrument to another party.

Quizplus · Accepted Answer

Lindsey becomes a holder in due course (HDC) when she pays the face value of the instrument, as this is when she gives value for it.

Lindsey, an Accountant for Madison & Monroe, Acquires a Negotiable