Under the UCC,a holder in due course is a holder who has given value for the instrument.Which of the following holders have given value for the instrument?
A)Beth promises to paint the neighbor's house in exchange for a promissory note as an advance payment for the job.
B)Steve gives a note and mortgage on his house to his attorney as a retainer to handle his pending divorce.
C)Todd,a newspaper carrier,accepts a properly indorsed two-party check for the past two months of deliveries.
D)All of these are correct.

Question

Quizplus · Accepted Answer

Todd, the newspaper carrier, accepted a properly indorsed two-party check for the past two months of deliveries. This means that he has given value for the instrument as he has fulfilled his obligation to deliver the newspaper for two months. Choices A and B involve a promise to perform a service and a retainer payment respectively, which do not constitute giving value for the instrument.

Under the UCC,a Holder in Due Course Is a Holder