In which of the following situations has the holder of a negotiable instrument not given value for it?
A)Where the holder takes the instrument as security for an antecedent claim.
B)Where the holder gives a negotiable instrument in return for the one received.
C)Where the holder receives the instrument as a gift.
D)Where the holder acquires a security interest in the instrument.

Question

Quizplus · Accepted Answer

A person who gets a check as a gift or merely makes an executory promise in return for a check has not given value for it and cannot qualify as a holder in due course.

In Which of the Following Situations Has the Holder of a Negotiable