Under which of the following Uniform Commercial Code (UCC) requirements is a holder considered a "holder in due course," given that the holder performs the agreed-upon promise in a negotiable instrument?
A) taking in good faith requirement
B) taking for value requirement
C) taking without notice of defect requirement
D) no evidence of forgery, alteration, or irregularity requirement

Question

Quizplus · Accepted Answer

According to the UCC, to be considered a "holder in due course," the holder must have taken the negotiable instrument for value, in good faith, and without notice of any defects (UCC § 3-302). Therefore, the correct requirement under which a holder can be considered a "holder in due course" is the taking for value requirement.

Under Which of the Following Uniform Commercial Code (UCC) Requirements