Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.

Question

Any irregularity on the face of an instrument that calls into question its validity will bar HDC status.​

Quizplus · Accepted Answer

According to the principle of negotiability, any irregularity on the face of an instrument will call into question its validity and will bar HDC status. A holder in due course (HDC) is a person who acquires a negotiable instrument in good faith, for value, and without notice of any defect or defense against it. Therefore, any flaw or defect in the instrument can revoke its status as negotiable and legally valid.

Any Irregularity on the Face of an Instrument That Calls