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Ch 26 Holder In Due Course #2

Ch 26 Holder In Due Course

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?

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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.