What Is the Effect on Susan's Status as a Holder

question 41

Multiple Choice

What is the effect on Susan's status as a holder in due course in taking the check from the customer that was four months old?

• A) There is no effect on her status as a holder in due course because an instrument such as a check is only considered overdue if it is outstanding for 150 days.
• B) There is no effect on her status as a holder in due course because an instrument is only considered overdue if it is outstanding for 180 days.
• C) There is no effect on her status as a holder in due course because an instrument is only considered overdue if it is outstanding for one year.
• D) It has no effect because a check is never considered overdue.
• E) She would not be considered a holder in due course because a check is considered overdue 90 days after its date.

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Definitions:

Diurnal

Periodically active during the day and inactive at night.

Ultradian

Describes biological rhythms with cycles shorter than 24 hours, such as the stages of sleep or patterns of hormone release.

Infradian

refers to biological rhythms with cycles that are longer than a day, such as menstrual or seasonal cycles.

Altered State

A condition of significant deviation from one's normal cognitive, emotional, or behavioral state, often induced by stress, meditation, drug use, or psychiatric disorders.