A Holder of an Instrument Cannot Be a Holder in Due

question 64

Multiple Choice

A holder of an instrument cannot be a holder in due course if (s) he:

• A) Possesses a negotiable instrument.
• B) Knows the instrument is overdue.
• C) Unknowingly holds an instrument with a forged signature.
• D) Takes the instrument free from disputes between the drawer and drawee.

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Definitions:

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating a future return or profit.

Interest

The expense associated with taking out a loan, usually conveyed as a yearly percentage of the total loan value.

Invested

Dispensing capital with the plan of creating income or profit.

Days

Time period measured in units of 24 hours.