The person who has a negotiable instrument may be either a holder in due course or an ordinary holder.

Question

Quizplus · Accepted Answer

A person who possesses a negotiable instrument can either be a holder in due course or an ordinary holder. A holder in due course is a person who acquires the instrument for value, in good faith, and without notice of any claims or defects on the instrument. An ordinary holder is any person who possesses the negotiable instrument but does not meet the requirements to be considered a holder in due course.

The Person Who Has a Negotiable Instrument May Be Either