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:

Tay-Sach's Disease

A genetic disorder that destroys nerve cells in the brain and spinal cord, leading to severe physical and developmental disabilities in infants.

PKU

A genetic disorder leading to the buildup of phenylalanine in the body, which can result in intellectual disabilities if not treated.

Enzyme

Proteins that act as biological catalysts to speed up chemical reactions in living organisms.

Creativity

The ability to produce original and valuable ideas, involves thinking or acting in ways that are unique and unconventional.