HIDC Flashcards
HIDC requirements
holder
for value
take in good faith
without notice of infirmities
holder?
issuance or negotiation
for value
give, do, or forgive something of value
what is not value?
gift
promises to do something
good faith?
honesty in fact
observance of reasonable commercial standards of fair dealing
without notice of infirmities
aware of any reason why legal obligation to pay is compromised
what are infirmities
claims/defenses
forgery alteration
overdue or dishonored
when can you NOT be a HIDC
acquired as successor in interest
bought in BK, creditor sale, legal process
bought in bulk transaction, not in OCOB
what is additionally required on a consumer note?
notice
what consumer notes require notice?
maker signs note in consumer transaction
transaction for sale or lease of goods or services
seller sells in OCOB
