In most instances, a payee on a note will qualify as an HDC by virtue of the fact that he or she has dealt directly with the maker.

Name: In most instances, a payee on a note will qualify as an HDC by virtue of the fact that he or she has dealt directly with the maker.
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Question

Quizplus · Accepted Answer

A payee on a note does not automatically qualify as a holder in due course (HDC) simply by dealing directly with the maker. To qualify as an HDC, the payee must take the note for value, in good faith, and without notice of any defects.

In Most Instances, a Payee on a Note Will Qualify