Under the Shelter Principle

question 85

Multiple Choice

Under the Shelter Principle:

• A) A holder may acquire the rights and privileges of an HDC even if the instrument is not transferred directly from an HDC.
• B) A holder may not acquire the rights of an HDC unless the instrument is transferred directly from an HDC.
• C) A holder who engages in fraud still may become an HDC if he or she later obtains the instrument from an HDC.
• D) The transferee does not acquire all the rights the transferor had in the item.
• E) The holder may not acquire the rights of an HDC if the instrument has been previously dishonored.

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Definitions:

Plate Boundaries

The edges where two tectonic plates meet, characterized by seismic and volcanic activity due to plate interactions such as divergence, convergence, or transformation.

Volcano

a geological formation that occurs when magma from within the Earth's mantle or crust escapes to the surface, often resulting in eruptions.

Plate Boundaries

The edges where two tectonic plates meet, often associated with earthquakes and volcanic activity.

Volcano

A geological formation, typically a mountain, where magma (lava), volcanic ash, and gases are expelled through the earth's crust.