To Qualify as a Holder in Due Course, the Holder

question 42

Multiple Choice

To qualify as a holder in due course, the holder must first be a(n)

• A) payee of the instrument.
• B) holder of the instrument.
• C) indorser.
• D) assignee.

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Definitions:

Complex

Consisting of many different and connected parts.

Simple

Easily understood or done; presenting no difficulty, or in logic, referring to an uncompounded statement or idea.

Implausible

Something that appears unlikely or difficult to believe based on available evidence or common sense.

Explanation

A statement or account that makes something clear by describing the relevant facts, reasons, or processes underlying a particular phenomenon or event.