California Real Estate Practice Exam

Question: 1 / 740

Which of the following is not a requirement to be a holder in due course of a negotiable instrument?

The instrument must have been taken directly from the maker of the note.

To be a holder in due course of a negotiable instrument, one must meet certain requirements. These requirements include obtaining the instrument for value, in good faith, and with an endorsement. Option A is incorrect because it does not mention obtaining the instrument for value, which is a crucial requirement. Option B and C are also incorrect because they do not mention obtaining the instrument in good faith. Option D is incorrect because it does not mention the requirement of an endorsement.

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The instrument must be endorsed.

The instrument must be obtained for value.

The instrument must be obtained in good faith.

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