A Taker of an Instrument Who Is a Holder in Due

question 31

Multiple Choice

A taker of an instrument who is a holder in due course at the time of the transfer, but who thereafter learns of a defense:

• A) becomes a holder through a holder in due course.
• B) becomes an ordinary holder.
• C) remains a holder in due course.
• D) becomes an assignee.

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Definitions:

Information

Data that has been processed, organized, or structured in a way that is meaningful and useful to the receiver.

Informal Conversation

Casual exchange of thoughts and information between individuals, without adherence to strict rules of dialogue.

Systematic Process

A methodical procedure followed in a fixed sequence of steps to achieve a specific result or outcome.

Boolean Logic

A form of algebra in which all values are reduced to either TRUE or FALSE, widely applied in computer science, search engine operations, and mathematical reasoning.