A person who knows that an instrument is overdue or has been dishonored cannot become a holder in due course.

Name: A person who knows that an instrument is overdue or has been dishonored cannot become a holder in due course.
Brand: Quizplus
Rating: 4.7 (45 reviews)

Question

Quizplus · Accepted Answer

A holder in due course must take an instrument for value, in good faith, without notice of any claims or defenses against it. Knowing that an instrument is overdue or has been dishonored constitutes notice and therefore disqualifies a person from becoming a holder in due course.

A Person Who Knows That an Instrument Is Overdue or Has