Under which of the following circumstances does a holder taking an instrument for value not become a holder in due course?
A)If the holder purchases the instrument at a judicial sale or under legal process.
B)If the holder takes the instrument for payment of a preceding claim.
C)If the holder exchanges the instrument for an irrevocable obligation to a third party.
D)If the holder performs the promise for which the instrument was issued.
E)If the holder acquires a security interest or some other lien in the instrument.

Question

Quizplus · Accepted Answer

A)Under one of the three exceptions to the value requirement,UCC Section
3-3033)states that a holder who takes a negotiable instrument for value does not become an HDC if he or she purchases the instrument at a judicial sale or under legal process.
B)Under one of the three exceptions to the value requirement,UCC Section
3-3033)states that a holder who takes a negotiable instrument for value does not become an HDC if he or she purchases the instrument at a judicial sale or under legal process.
C)Under one of the three exceptions to the value requirement,UCC Section
3-3033)states that a holder who takes a negotiable instrument for value does not become an HDC if he or she purchases the instrument at a judicial sale or under legal process.
D)Under one of the three exceptions to the value requirement,UCC Section
3-3033)states that a holder who takes a negotiable instrument for value does not become an HDC if he or she purchases the instrument at a judicial sale or under legal process.

Under Which of the Following Circumstances Does a Holder Taking