Holder in Due Course Flashcards Preview

Commercial Paper > Holder in Due Course > Flashcards

Flashcards in Holder in Due Course Deck (2):
1

Elements of Holder in Due Course

1) Negotiable Instrument

2) Holder

3) Authenticity not apparently questioned

4) Holder MUST pay value

5) Good Faith

6) Without Notice at time of instrument acquisition

7) Shelter Rule

8) Burden of Proof.

2

HDC

Real Defenses

1) Infancy

2) Duress (which avoids obligation)

3) Lack of legal capacity (Make obligation void)

4) Illegality (Making obligation void)

5) Fraud in execution

6) discharge to insolvency

7) Omission of requirement consumer protection language.

8) SOL

9) Payment to former holder.

10) Alteration

11) Unauthorized signature and forgeries