What is the effect on Kelsey's status as a holder in due course in taking from the customer the check that was four months old?
A)There is no effect on her status as a holder in due course because an instrument is only considered overdue if it is outstanding for one year.
B)There is no effect on her status as a holder in due course because an instrument such as a check is only considered overdue if it is outstanding for 150 days.
C)She would not be considered a holder in due course because a check is considered overdue 90 days after its date.
D)There is no effect on her status as a holder in due course because an instrument is only considered overdue if it is outstanding for 180 days.
E)It has no effect because a check is never considered overdue.

Question

Quizplus · Accepted Answer

A)If a demand instrument is a check,it is overdue 90 days after its date [UCC
3-304a)2)].The date on the check gives another party notice of its overdue status;thus,the party cannot be an HDC.
B)If a demand instrument is a check,it is overdue 90 days after its date [UCC 3-304a)2)].The date on the check gives another party notice of its overdue status;thus,the party cannot be an HDC.
C)If a demand instrument is a check,it is overdue 90 days after its date [UCC 3-304a)2)].The date on the check gives another party notice of its overdue status;thus,the party cannot be an HDC.
D)If a demand instrument is a check,it is overdue 90 days after its date [UCC 3-304a)2)].The date on the check gives another party notice of its overdue status;thus,the party cannot be an HDC.
E)If a demand instrument is a check,it is overdue 90 days after its date [UCC 3-304a)2)].The date on the check gives another party notice of its overdue status;thus,the party cannot be an HDC.

What Is the Effect on Kelsey's Status as a Holder