Charges, Payments, and Adjustments Are Called ________

question 10

Short Answer

Charges, payments, and adjustments are called ________.

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Definitions:

Shelter Principle

The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC), but who derives his or her title through an HDC, acquires the rights of an HDC.

HDC Status

HDC status refers to being recognized as a Holder in Due Course, which grants certain legal protections in the context of financial instruments, emphasizing good faith acquisition and the absence of knowledge of defects.

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or a bill of exchange.

Notice

A formal indication or announcement given by one party to another regarding a legal obligation or process.