Exam 25: Transferability and Holder in Due Course

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Under the UCC, a transfer of rights under a contract is a negotiation.

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A promise to give value in the future is normally sufficient to confer the rights of an HDC on one in possession of a negotiable instrument.

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To become an HDC, a person must take an instrument with no?tice of any claim, defense, or defect.

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An instrument is not defective because it has been previ?ously dis?honored.

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