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

question 5

Multiple Choice

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

• A)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.
• B)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.
• C)She would not be considered a holder in due course because a check is considered overdue 90 days after its date.
• D)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.
• E)It has no effect because a check is never considered overdue.

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Definitions:

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Written laws passed by a legislative body at the federal, state, or municipal level, codified and enforceable by government authorities.

Business Law

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Regulations or principles, established by legal authority, which are binding and subject to enforcement through legal proceedings.

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