Asked by
Savannah Winchester
on Nov 27, 2024
Verified
To obtain HDC status, a holder must take an instrument in good faith from a transferor who likewise acts in good faith.
HDC Status
Stands for "Holder in Due Course" status, a legal term indicating a party has acquired a negotiable instrument in good faith and without notice of any defect.
Good Faith
The honest intent to act without taking an unfair advantage over another party, characterized by honesty and fairness in dealings.
Transferor
An individual or entity that transfers rights, ownership, or interests in assets to another party.
- Acquire knowledge about the prerequisites for becoming a holder in due course (HDC) and the legal protections assigned to HDCs.
Verified Answer
AS
Learning Objectives
- Acquire knowledge about the prerequisites for becoming a holder in due course (HDC) and the legal protections assigned to HDCs.