One of the requirements needed for a holder of a negotiable instrument to be a holder in due course is the value requirement. Ruper is a holder of a $1,000 check written out to her. Which of the following would NOT satisfy the value requirement?
a. Ruper received the check from a tax client to pay off a four-month-old debt.
b. Ruper took the check in exchange for a negotiable note for $1,200 which was due on that day.
c. Ruper received the check in exchange for a promise to do certain specified services three months later.
d. Ruper received the check for a tax service debt for a close relative.
Answer: C
Tax
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