Which of the Following Requirements Has to Be Met for a Holder

Multiple Choice

Which of the following requirements has to be met for a holder to qualify as an HDC under the shelter principle?

A) The holder must not be in possession of a prior negotiable instrument.
B) The holder must have notice of a defense or claim against the payment of the instrument.
C) The holder must have been a party to a fraud or an illegality affecting the instrument.
D) The holder must have acquired the instrument from an HDC.