A person can be a holder if:
A) the instrument has been issued to that person.
B) the instrument has been transferred to that person by negotiation.
C) the instrument is ambiguous.
D) Either the instrument has been issued to that person or the instrument has been transferred to that person by negotiation.

Question

A person can be a holder if:
A) the instrument has been issued to that person.
B) the instrument has been transferred to that person by negotiation.
C) the instrument is ambiguous.
D) Either the instrument has been issued to that person or  the instrument has been transferred to that person by negotiation.

Quizplus · Accepted Answer

A person becomes a holder of a negotiable instrument either by the instrument being issued to them or through the process of negotiation, where the instrument is legally transferred to them from another party. Choices A and B are specific instances that fall under the broader category described in D, making D the correct comprehensive choice.

A Person Can Be a Holder If