A holder takes an instrument for value if he or she accepts the instrument in payment of a preexisting obligation.

Name: A holder takes an instrument for value if he or she accepts the instrument in payment of a preexisting obligation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a holder takes an instrument for value, it means the holder has acquired the instrument as payment for a preexisting obligation, such as a debt or a contract. Therefore, the statement is true.

A Holder Takes an Instrument for Value If He or She