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A Holder Cannot Qualify as a Holder in Due Course

question 70

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A holder cannot qualify as a holder in due course if he or she has notice that the instrument contains an unauthorized signature or has been altered or that there is any adverse claim against or defense to its payment.This rule is commonly referred to as the ________ doctrine.


Definitions:

Silver Acetate

A chemical compound with the formula AgC2H3O2, used in plating and as a photographic agent.

NaCl

Sodium chloride, commonly known as table salt, an ionic compound consisting of sodium and chloride ions.

AgCl

Silver chloride, a white crystalline solid that is photosensitive and less soluble in water.

Spectator Ions

Ions that are present in a chemical reaction but do not participate in it, remaining unchanged throughout the reaction.

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