A Holder in Due Course

Multiple Choice

A holder in due course:

A) inherits whatever claims and defenses arise out of the contract between the issuer and payee.
B) has an automatic right to receive payment for a negotiable instrument unless the issuer can claim a valid defense.
C) has a right of payment dependent upon the relationship between the issuer and payee.
D) has a status that increases the value of an instrument but does not change the probability of being paid on the instrument.