A(n)________ takes an instrument free of many defenses that could be asserted against the original payee.
A) holder in due course
B) holder through negotiation
C) bona fide purchaser
D) good faith purchaser
E) assignee

Question

Quizplus · Accepted Answer

A holder in due course takes an instrument free of many defenses that could be asserted against the original payee. To become a holder in due course, the party must meet certain requirements such as taking the instrument for value, in good faith, without notice of any potential claims or defenses against it, and meeting certain timing requirements.

A(n)________ Takes an Instrument Free of Many Defenses That Could