Asked by Elyssa Arcibal on May 20, 2024
Verified
Set forth the requirements a party must meet in order to be considered a holder in due course.
Holder In Due Course
A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original payee.
Requirements
Conditions or capabilities needed to achieve a specific task or to adhere to standards or regulations.
Party
An individual or group involved in a legal proceeding or social event.
- Acquire knowledge about the attributes and criteria necessary to qualify as a holder in due course (HDC), as well as the privileges and defenses bestowed upon HDCs.
Verified Answer
CR
Christian RuttleyMay 22, 2024
Final Answer :
In order to be considered a holder in due course, the following requirements must be met: (1) The party must be a holder of a complete and authentic negotiable instrument; (2) The holder must take the instrument for value; (3) The holder must take the instrument in good faith; (4) The holder must take the instrument without notice of defects.
Learning Objectives
- Acquire knowledge about the attributes and criteria necessary to qualify as a holder in due course (HDC), as well as the privileges and defenses bestowed upon HDCs.