D has owed C a debt of $500 for two years.If D now signs a promissory note payable to C, the antecedent debt meets the requirement of "value" in determining C's status as a holder in due course.

Question

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The antecedent debt of $500 qualifies as "value" under the Uniform Commercial Code. Therefore, if D signs a promissory note payable to C, the note will be considered a new obligation, and C will be considered a holder in due course if all other requirements are met.

D Has Owed C a Debt of $500 for Two