Often, whether a holder will be able to obtain payment on an instrument will depend on whether he or she is a holder in due course.

Question

Quizplus · Accepted Answer

A holder in due course is someone who has acquired a negotiable instrument (such as a check or promissory note) for value, in good faith, without notice of any defects or claims against the instrument, and who meets other legal requirements. If a holder meets these criteria, they have greater legal rights to enforce payment on the instrument than someone who is not a holder in due course.

Often, Whether a Holder Will Be Able to Obtain Payment