Question

Blythe, an accountant for Credits & Debits, acquires a negotiable instru­ment from Eton by promis­ing to pay its face value in thirty days. Blythe ac­quires the status of an HDC when she

a. acquires possession of the negotiable instrument.

b. agrees with Eton to buy the negotiable instrument.

c. pays the face value due on the instrument.

d. transfers the instrument to another party.

Answer 1

c. pays the face value due on the instrument.

Step-by-step explanation:

Holder In Due Course (HDC) is a legal term that describes a person given a negotiable instrument e.g. check, for an exchange of service without any doubt in it's legitimacy.

Blythe ac­quires the status of an HDC when she pays the face value due on the instrument.