Which of the following would prevent the holder of an instrument from asserting holder in due course status?
A)An executory promise as value.
B)Knowledge that the instrument is overdue.
C)Being the payee on a check.
D)Two of the above, (a) and (b).

Question

Quizplus · Accepted Answer

(A) An executory promise as value means that the value promised in exchange for the instrument will be given in the future. This prevents the holder from being considered a holder in due course.
(B) The knowledge that the instrument is overdue suggests that the holder did not take the necessary precautionary measures, such as checking the due date, which can disqualify them from being a holder in due course. 
(C) Being the payee on a check does not necessarily prevent one from being a holder in due course.

Which of the Following Would Prevent the Holder of an Instrument