A person who receives a check as a gift cannot qualify as a holder in due course.

Name: A person who receives a check as a gift cannot qualify as a holder in due course.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

In order to be considered a holder in due course, the person must have acquired the check for value, in good faith, and without notice of any defects or issues with the check. Receiving a check as a gift does not meet these requirements.

A Person Who Receives a Check as a Gift Cannot