A note is due October 12, 20XX. On October 21, 20XX Able takes rightful possession of the note. He cannot be a holder in due course.

Question

Quizplus · Accepted Answer

Able took possession of the note after its due date, which means that he cannot be a holder in due course. A holder in due course must take possession of a negotiable instrument before it becomes due, in good faith, without knowledge of any defects or problems with the instrument, and for value. Since Able did not meet these requirements, he cannot be considered a holder in due course.

A Note Is Due October 12, 20XX