OVERRIDING BRIGHT-LINE RULE! Flashcards

1
Q

What is the overriding bright-line rule of commercial paper?

A

When a NEGOTIABLE INSTRUMENT is DULY NEGOTIATED to a HOLDER IN DUE COURSE, the holder in due course takes the instrument FREE OF ALL CLAIMS to it, FREE OF ALL PERSONAL DEFENSES, and subject only to REAL DEFENSES.

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