Which of the Following Qualification Renders a Person as a Holder

question 7

Multiple Choice

Which of the following qualification renders a person as a holder in due course of a negotiable instrument?

• A)if he takes the negotiable instrument for value
• B)if he is subject to claims and defenses against the transferor
• C)if he is in possession of an instrument issued in his name
• D)if he is in possession of an instrument issued in another's name

---

Definitions:

Fraudulent Indorsements

Fraudulent indorsements occur when a person illegally signs a document on behalf of another without permission or authority, often to misappropriate funds.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions between U.S. states, including sales, leases, negotiable instruments, and secured transactions.

Valuable Necklace

A piece of adornment, often made of precious metals and stones, considered to have significant monetary worth.

Imposter Rule

A legal principle that protects the drawer of a negotiable instrument from being held liable to an impostor or in cases of fraud, provided certain conditions are met.