Under Which of the Following Circumstances Does a Holder Taking

question 37

Multiple Choice

Under which of the following circumstances does a holder taking an instrument for value not become a holder in due course?

• A) If the holder acquires a security interest or some other lien in the instrument.
• B) If the holder purchases the instrument at a judicial sale or under legal process.
• C) If the holder takes the instrument for payment of a preceding claim.
• D) If the holder performs the promise for which the instrument was issued.
• E) If the holder exchanges the instrument for an irrevocable obligation to a third party.

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