What type of notice prevents a holder from being a holder in due course?
A)Notice that the instrument is overdue.
B)Notice that the instrument has been dishonored.
C)Notice that the instrument was issued as part of a series that is in default.
D)Notice that the instrument is overdue,notice that the instrument has been dishonored,or notice that the instrument was issued as part of a series that is in default.
E)Notice that the instrument is overdue or notice that the instrument has been dishonored,but not notice that the instrument was issued as part of a series that is in default.

Question

Quizplus · Accepted Answer

According to Uniform Commercial Code Section 3-302(a),if a holder has notice or is aware of any of the following defects,the holder cannot be a holder in due course: The instrument is overdue,the instrument has been dishonored,the instrument was issued as part of a series that is in default,the instrument has been altered or contains an unauthorized signature,there is a claim to the instrument,or another party has a defense or claim in recoupment to the instrument.

What Type of Notice Prevents a Holder from Being a Holder