A person can become an HDC only if he or she knows or has reason to know that an instrument is defective and is willing to assume the risk of its dishonor.

Question

Quizplus · Accepted Answer

A person can become a holder in due course (HDC) without knowing that the instrument is defective. The status of HDC is generally obtained by taking the instrument for value, in good faith, and without notice of any defect at the time of acquisition.

A Person Can Become an HDC Only If He or She