Examlex
In the following table,indicate the effects of failing to recognize each of the indicated adjustments by writing "O" for overstated and "U" for understated.If there is no effect,write "NE."
Holder
A person who is in possession of a negotiable instrument that is issued or indorsed to that person’s order or to bearer.
Negotiable Instrument
A written document that is signed by the maker or drawer and that contains an unconditional promise or order to pay a certain sum of money on delivery or at a definite time to the bearer or to order.
Holder in Due Course
A legal term describing a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims.
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