Asked by Chris Milano on Jul 02, 2024
Under the Shelter Principle:
A) A holder may acquire the rights and privileges of an HDC even if the instrument is not transferred directly from an HDC.
B) A holder may not acquire the rights of an HDC unless the instrument is transferred directly from an HDC.
C) A holder who engages in fraud still may become an HDC if he or she later obtains the instrument from an HDC.
D) The transferee does not acquire all the rights the transferor had in the item.
E) The holder may not acquire the rights of an HDC if the instrument has been previously dishonored.
Shelter Principle
A legal doctrine in property law that allows a person who acquires property in good faith and without notice of prior claims to be protected from those claims.
Holder
In financial terms, an individual or entity that possesses a negotiable instrument, such as a check or bond, legally.
- Detail the principles of shelter as they pertain to and are implemented in negotiable instruments.
Learning Objectives
- Detail the principles of shelter as they pertain to and are implemented in negotiable instruments.