What Is the Effect of the Check's Alteration on Kelsey's

question 27

Multiple Choice

What is the effect of the check's alteration on Kelsey's status as a holder in due course?

• A)On the basis that the law does not want to unduly burden holders,the alteration will affect her status as a holder in due course only because the instrument was written for an amount in excess of $500.
• B)The alteration has no effect because a holder is not charged with examining an instrument presented for payment.
• C)The alteration will affect her status as a holder in due course only if the issuer can establish that it was not negligent in allowing a thief to gain access resulting in the alteration.
• D)The alteration will affect her status as a holder in due course only if she had been put on notice of prior criminal behavior in the past on the part of Rafe.
• E)The alteration will likely prohibit her from being a holder in due course.

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