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 negotiable instrument.
B) promises to pay the face value due on the instrument.
C) pays the face value due on 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 negotiable instrument.
B) ​promises to pay the face value due on the instrument.
C) ​pays the face value due on 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 due on the instrument, as this fulfills the requirement of giving value for the instrument.

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