To be a holder in due course,the person in possession of the instrument must first give consideration and then be an indorser.

Question

Quizplus · Accepted Answer

To be a holder in due course, the person must have taken the instrument for value (consideration), in good faith, and without notice that it is overdue or has been dishonored or that there is any claim against it or any party or defense by any party. Being an indorser is not a requirement to be a holder in due course.

To Be a Holder in Due Course,the Person in Possession