A promise to perform or give value in the future is sufficient value to make the promisor an HDC.

Question

Quizplus · Accepted Answer

For someone to be considered a holder in due course (HDC), the instrument must be taken for value, in good faith, and without notice of any defect. A mere promise to perform or give value in the future does not constitute "value" as required for HDC status; the value must be given at the time of the transaction.

A Promise to Perform or Give Value in the Future