Joey,in good faith and for value,gets from Kit a negotiable bearer in?stru?ment.Joey does not know that Kit stole the instrument.Joey is
A)an HDC.
B)not an HDC,because Kit did not acquire the instrument for value.
C)not an HDC because Kit did not acquire the instrument in good faith.
D)not an HDC because the instrument is a bearer instrument.

Question

Quizplus · Accepted Answer

Joey is an HDC (holder in due course) because he received the instrument in good faith and for value, without knowledge of any defects in the title. It doesn't matter that the instrument was stolen by Kit, as long as Joey had no reason to know this. The fact that the instrument is a bearer instrument does not affect Joey's status as HDC.

Joey,in Good Faith and for Value,gets from Kit a Negotiable