Which of the following is not a requirement for becoming a holder in due course?
A)The party must be a holder of a complete and authentic negotiable instrument.
B)The holder must take the instrument for value.
C)The holder must take the instrument in good faith.
D)The holder must take the instrument without notice of defects.
E)The holder must either pay for the instrument or receive it as a gift.

Question

Quizplus · Accepted Answer

In order to be considered a holder in due course,a party must take an instrument for value; therefore,when a party receives a negotiable instrument as a gift or acquires it through mistake,the party will be a holder instead of a holder in due course.

Which of the Following Is Not a Requirement for Becoming