Muni Investment Company signs a check payable to Notes & Loans Inc. to buy a promissory note executed by Omni Corporation. This check
A)does not constitute sufficient consideration for HDC status.
B)does not satisfy the value requirement for HDC status.
C)satisfies the consideration requirement for HDC status.
D)satisfies the value requirement for HDC status.

Question

Quizplus · Accepted Answer

The check represents a payment for the promissory note, which satisfies the value requirement for Holder in Due Course (HDC) status.

Muni Investment Company Signs a Check Payable to Notes