Larson is claiming to be a holder in due course of two instruments. One is a draft that is drawn on Picket Company and says "Pay to Brunt." The other is a check that says "Pay to Brunt." Both are endorsed by Brunt on the back and made payable to Larson. Larson gave value for and acted in good faith concerning both the draft and the check. Larson also claims to be ignorant of any adverse claims on either instrument which are not overdue or have not been dishonored. Which of the following is (are) true?
I. Larson is a holder in due course of the draft.
II. Larson is a holder in due course of the check.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
Answer: B
CPA Exam
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