Determine Holder In Due Course Status Practice Test

The holder must be a holder of a negotiable instrument, must have given value for the instrument, must have taken it in good faith, and must have taken it without notice of any defense, claim, dishonor, or that the instrument is overdue.

The holder must have paid fair market value, must have signed the instrument, and must have taken it from the original payee.

The holder must have given value, must have taken the instrument in good faith, and must have taken it before the instrument was overdue.

The holder must have taken the instrument by indorsement and delivery, must be a merchant, and must have given consideration.