What Is the Effect of the Alteration of the Check

question 15

Multiple Choice

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

• A) The alteration has no effect because a holder is not charged with examining an instrument presented for payment.
• B) The alteration will likely prohibit her from being a holder in due course.
• C) 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 Bob.
• D) 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.
• E) 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.