A person can be a holder if:
A)the instrument has been issued to that person.
B)the instrument has been transferred to that person by negotiation.
C)the instrument is ambiguous.
D)Both (a) and (b) are correct.

Question

Quizplus · Accepted Answer

A person can become a holder either by receiving a negotiable instrument through its issuance to that person (option A) or through transfer by negotiation (option B). Therefore, option D, which includes both A and B, is correct. Option C, which mentions ambiguity, is not relevant to whether someone can be a holder.

A Person Can Be a Holder If