When a negotiable instrument is transferred by negotiation, the transferee becomes a holder in due course.
Correct Answer:
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Q10: A holder is also known as an
Q11: An instrument may be transferred only by
Q12: Order paper is converted into bearer paper
Q13: Bearer paper may only be negotiated by
Q14: A qualified indorsement qualifies the effect of
Q16: If an instrument is payable to bearer,
Q17: A restrictive indorsement specifies the purpose of
Q18: An ordinary holder of an instrument has
Q19: A payee whose name is misspelled may
Q20: When a special indorsement is made, the
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