This rule provides that a person who does not qualify as a holder in due course (HDC) but takes possession of a promissory note

Question

3 years ago

9

This rule provides that a person who does not qualify as a holder in due course (HDC) but takes possession of a promissory note

through an HDC can acquire the rights and privileges of an HDC which of the following:
a. the reformed holder rule.
b. the new holder principle.
c. the shelter principle.
d. the impermanence principle.

Social Studies

1 answer:

Elena L [17] · Answer 1 · 2022-08-29T11:01:16+03:00

Elena L [17]3 years ago

7 0

Answer: the shelter principle

Explanation:

The shelter principle refers to allowing a party or individual who has a non-HDC and derives the title through an HDC to enjoy the rights of an HDC. Irrespective of a given negotiable instrument and can still obtain those rights.