Q 1) What makes a Holder in Due Course magical as compared to an ordinary holder?
2)How does one qualify as a HDC?
3) When is a check deemed "overdue"?
4) What is the shelter principle?
A Holder in Due Course becomes magical as compared to an ordinary holder as a HDC has the power to obtain a negotiable instrument before the maturity of the instrument (Clarkson, Miller & Cross, 2016). This can take place when the HDC has been selected/nominated to receive the instrument in good faith. In case of an ordinary holder, good faith is not taken into consideration.