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On June 1,Mike writes a check payable to Pete.Without ever being paid,the check is eventually negotiated to Hal,who receives it on September 15 with notice of the date on its face.Hal is not a holder in due course of the check.
Contextual Cues
Environmental or situational elements that influence perception, understanding, or behavior in given settings.
Holder in Due Course
A person who has acquired a negotiable instrument in good faith and for value, thus having certain legal protections.
Non-negotiable Instrument
A financial document whose terms cannot be altered or transferred in favor of someone other than the stated payee.
Holder
In a financial context, a person or entity that possesses or owns a negotiable instrument, like a check or bond, and has the right to enforce the instrument.
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