A person will be afforded HDC protection if he or she acquires an instrument knowing, or having reason to know, that it is defective.

Name: A person will be afforded HDC protection if he or she acquires an instrument knowing, or having reason to know, that it is defective.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A person cannot be a holder in due course (HDC) if they acquire an instrument knowing, or having reason to know, that it is defective. HDC status requires good faith and lack of notice of defects.

A Person Will Be Afforded HDC Protection If He or She