A person can become an HDC only by acquiring an instrument that is so incomplete as to lack an element of negotiability.

Name: A person can become an HDC only by acquiring an instrument that is so incomplete as to lack an element of negotiability.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

A person can become a holder in due course (HDC) by acquiring a complete and negotiable instrument, not just an incomplete one. An HDC must meet certain criteria, including taking the instrument for value, in good faith, and without notice of any defects.

A Person Can Become an HDC Only by Acquiring an Instrument