A holder of a negotiable promissory note would be least likely be a holder in due course if: A) He purchased it at a discount B) The note is overdue by three weeks C) The note is payable to bearer on demand D) The holder acquired the note as payment for a debt owed to him Solution B) The note is overdue by three weeks - If an instrument is overdue by 3 weeks will prevent a party from being a holder in due course Answer a is incorrect because commercial paper are alsmost always purchased on discount Answer c is incorrect because it is payable to the bearer without affecting if the party is an holder in due course .

1. A holder of a negotiable promissory note would be least likely be a holder in due course if:
A) He purchased it at a discount
B) The note is overdue by three weeks
C) The note is payable to bearer on demand
D) The holder acquired the note as payment for a debt owed to him
Solution
B) The note is overdue by three weeks - If an instrument is overdue by 3 weeks will prevent
a party from being a holder in due course
Answer a is incorrect because commercial paper are alsmost always purchased on discount
Answer c is incorrect because it is payable to the bearer without affecting if the party is an holder
in due course