Jill,in good faith and for value,gets from Kit a check "payable to the order of bearer." Jill does not know that Kit stole the check.Jill is
A)an HDC.
B)not an HDC,because Kit did not acquire the check for value.
C)not an HDC,because Kit did not acquire the check in good faith.
D)not an HDC,because the check is a bearer instrument.

Question

Quizplus · Accepted Answer

Jill is a holder in due course (HDC) because she took the check in good faith, for value, and without notice of any defect. The fact that the check is a bearer instrument does not affect her status as an HDC.

Jill,in Good Faith and for Value,gets from Kit a Check