Receiving an instrument as a gift satisfies the holder in due course requirement of taking an instrument for value.

Name: Receiving an instrument as a gift satisfies the holder in due course requirement of taking an instrument for value.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

In order to receive holder in due course status, 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 an HDC.

Receiving an Instrument as a Gift Satisfies the Holder in Due