A promise to give value in the future is NOT sufficient to confer the rights of an HDC on one in possession of a negotiable instrument.

Question

Quizplus · Accepted Answer

To confer the rights of an HDC (holder in due course) on someone in possession of a negotiable instrument, it is not enough for the person to simply promise to give value in the future. An HDC must have given value for the instrument at the time of its acquisition, according to UCC (Uniform Commercial Code) §3-302.

A Promise to Give Value in the Future Is NOT