Which of the Following Requirements Has to Be Met for a Holder

question 38

Multiple Choice

Which of the following requirements has to be met for a holder to qualify as a holder in due course (HDC) under the shelter principle?

• A) The holder must not be in possession of a prior negotiable instrument.
• B) The holder must have notice of a defense or claim against the payment of the instrument.
• C) The holder must have been a party to a fraud or an illegality affecting the instrument.
• D) The holder must have acquired the instrument from an HDC.

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Definitions:

Sense Of Security

A feeling of safety and freedom from worry or danger.

Affiliation

The need to form relationships and be part of a group; a psychological drive towards social connections and associations.

Twin Studies

Twin studies are research designs in psychology and genetics that compare the similarities and differences between monozygotic (identical) and dizygotic (fraternal) twins to understand the influence of genetics versus environment.

Genetic Component

A portion of an organism's traits or conditions influenced by genes inherited from its parents.