BUS-294 Lecture Notes - Lecture 16: Negotiable Instrument

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: BUS-294
• Professor: Miller

Document Summary

Holder in due course: has more rights in a check rather than holder. Automatic right to receive payment for an negotiable instrument. Requirements to be a holder in due course: Gave consideration for instrument: gave some value for that instrument. Good faith: had no idea there might have been problems. Has been dishonored: (nsf) non sufficient funds: not enough money in the bank account to serve the check. Unauthorized signature or alterations (ex: white- out, different colored ink, Shelter principle: if you yourself are the holder of the check and can"t meet all the. Is so irregular or incomplete. requirements of holder due course than there is a way to save you and make you become a holder due course. If you receive it (the other party) from a holder of due course then you automatically become a holder of due course because the other person is a holder of due course.