Entrepreneur LLC owes Data Analysis Company $2,000. Entrepreneur executes a note to Data Analysis as security for the debt. This security
A) does not constitute sufficient consideration for HDC status.
B) does not satisfy the value requirement for HDC status.
C) satisfies the consideration requirement for HDC status.
D) satisfies the value requirement for HDC status.

Question

Quizplus · Accepted Answer

The execution of a note as security for a debt satisfies the value requirement for Holder in Due Course (HDC) status because it represents a binding commitment to pay the debt.

Entrepreneur LLC Owes Data Analysis Company $2,000