The holder must meet both an objective and a subjective test to be considered to have acquired an instrument in good faith.

Question

Quizplus · Accepted Answer

This statement is true. In order to be considered to have acquired an instrument in good faith, the holder must have both objectively acted in good faith (meaning a reasonable person would have acted in the same manner) and subjectively believed they were acquiring the instrument in good faith.

The Holder Must Meet Both an Objective and a Subjective