Question

Flossie signs a check payable to Glenn and gives it to him, leaving the amount blank but authorizing him to fill it in for $1,000. Glenn fills in $1,500 and negotiates the check to Home Federal Bank, and HDC. Home Federal can enforce the check for : a. $0 b. $500 c. $1,000 d. $1,500

Answer 1

Answer:

d. $1,500.

Step-by-step explanation:

Legal term for an original or any subsequent holder of a negotiable instrument (check, draft, note, etc.) who has accepted it in good-faith and has exchanged something valuable for it. For example, anyone who accepts a third-party check is a holder in due course.

Holder in Due Course, HDC called protected holder is a bona fide holder for value. So Holder in Due Course means; If payment is not made on a negotiable instrument when it is due, the holder can use the court system to enforce the instrument. Various parties, including both signers and non-signers, may be liable for it.