To have the status of a holder in due course, a person must first be a holder.

Question

Quizplus · Accepted Answer

This statement is true. In order to have the status of a holder in due course, a person must first qualify as a holder. This means that they must possess the negotiable instrument (such as a check or promissory note) and have it legally transferred to them. Once they meet these qualifications, they can then become a holder in due course if they meet certain additional requirements, such as taking the instrument in good faith and without notice of any defects or claims against it.

To Have the Status of a Holder in Due Course