Question: When has a holder in due course ( HDC ) taken an instrument for value? The holder has taken an instrument for value only when

When has a holder in due course

(

HDC

)

taken an instrument for value?

The holder has taken an instrument for value only when the holder has acquired a security interest or other lien in the instrument.

When the holder has performed the promise for which the instrument was issued or transferred; acquired a security interest or other lien in the instrument; taken the instrument in payment of

,

as security for, a preexisting obligation; given a negotiable instrument as payment; or given an irrevocable commitment as payment.

The holder has taken an instrument for value only when the holder has taken the instrument in payment of

,

or as security for, a preexisting obligation; given a negotiable instrument as payment; or

given an irrevocable commitment as payment.

The holder has taken an instrument for value only when the holder has performed the promise for which the instrument was issued or transferred.

When has a holder in due course (HDC) taken an instrument

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please answer the following questions 1) Do UCC Article 3 requirements for negotiability make it easy to negotiate commercial paper? What is the importance of the seamless negotiation of commercial...

Demery worked as a bookkeeper at Clinton Georgs business, Freestyle, until Georg discovered that she had embezzled more than $200,000 and had failed to pay $240,000 in state and federal taxes owed by...

There are four kinds of instruments: draft, check, promissory note, certificate of deposit. A draft is a three-party instrument. This means three persons are involved in the transaction. A draft is...

What are all the requirements for attaining holder in due course ( H D C ) status? An HDC must be a holder of a negotiable instrument and must have taken the instrument for value, in good faith, and...

The transfer of a negotiable instrument by a person other than the issuer to a person who thereby becomes a holder is referred to as a(n) ________. A. insurance B. negotiation C. indorsement D....

What are the limitations , if any, on the shelter principle? There is one limitation on the shelter principle. If a holder participated in fraud or illegality affecting the instrument, that holder...

Green Thumb Landscaping, LLC (Green Thumb) is a large-scale landscaping service. Green Thumb executed 20 promissory notes in favor of Equipment Finance Company (EFC) for equipment purchased for use...

American International Group, Inc. ( AIG ) , an insurance company, issued a check to Jermielem Merriwether in connection with a personal injury matter. Merriwether presented the check to A 1 Check...

1. The holder or holder in due course (HDC) of a promissory note made by a minor is entitled to payment under which of the following conditions? A)If the minor does not assert the defense that he or...

Discuss any five tax planning measures that can be undertaken by individuals. 2a. On 15th July 2012, Eldoret merchants imported goods valued at Kshs. 1,200,000. The customs duty chargeable on these...

Suggest reagents suitable for carrying out each step in the following synthetic sequence: Br Br"

A default rate is a high APR that is assessed whenever a borrower fails to uphold certain rules of the account. Question 2 6 options: TrueFalse

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.