A holder of a negotiable instrument cannot be a holder in due course when the holder learns of a defense to payment after the acquisition of the instrument.

Name: A holder of a negotiable instrument cannot be a holder in due course when the holder learns of a defense to payment after the acquisition of the instrument.
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Question

Quizplus · Accepted Answer

A holder can still be a holder in due course if they acquired the instrument without notice of any defenses or claims against it, even if they learn of a defense after acquisition.

A Holder of a Negotiable Instrument Cannot Be a Holder