Asked by
Leslie Aguilar
on Nov 27, 2024
Verified
When an instrument is transferred, an ordinary holder obtains only those rights that the transferor had in the instrument but is free of most of the defenses and claims that could be asserted against the transferor.
Ordinary Holder
A typical investor or shareholder who possesses a security or financial instrument without any special rights or privileges.
Transferor
An entity or person who transfers or conveys rights, property, or other assets to another party, the transferee.
Rights
Entitlements or freedoms granted by legal, social, or moral principles that are inherent to all human beings.
- Gain insight into the criteria that must be met for one to be designated as a holder in due course (HDC) and the defensive privileges associated with this status.
- Outline the responsibilities and roles of the parties involved in the negotiation, transfer, and financial settlement of negotiable instruments.
Verified Answer
KC
Learning Objectives
- Gain insight into the criteria that must be met for one to be designated as a holder in due course (HDC) and the defensive privileges associated with this status.
- Outline the responsibilities and roles of the parties involved in the negotiation, transfer, and financial settlement of negotiable instruments.