acquiring status as holder in due course

Question 1

first must acquire status as a holder

Question 2

requirements for HIDC

Answer 2

1) acquire status as holder
2) pay value for instrument
3) pay instrument in good faith and
4) without notice

Question 3

value

Answer 3

give something of value, do something of value or forgive something of value

Question 4

what is not considered value

Answer 4

gift, unexecuted promises to perform, paying less than note’s full value is okay

Question 5

taking instrument in good faith

Answer 5

honesty in fact: what person receiving instrument is aware of AND
observance of reasonable commercial standards of fair dealing: what person should have surmised given the context in which the instrument was negotiated

Question 6

taking instrument w/o notice

Answer 6

cannot acquire statuts as HDC if holder is aware of any reason as to why the legal obligation can be compromised

Question 7

what constitutes notice

Answer 7

actual, constructive, reason to know there is a problem

Question 8

infirmity

Answer 8

holder has notice of claim in recoupment
notice of forged, altered, etc.

holder has notice its overdue– checks are overdue 90 days after date of issue