Becoming a Holder
Learn how Article 3 defines the term holder and how a nonholder possessor may acquire a holder’s rights.
Transcript
When Article 3 refers to a person entitled to enforce the instrument, this means either the instrument’s holder, a nonholder who possesses the instrument and has a holder’s rights, or one who doesn’t possess the instrument but is entitled to enforce it.
In this lesson, we’ll consider how one becomes an instrument’s holder or acquires a holder’s rights.
I. Holder
Under Article 3, a person will be considered the holder of a negotiable instrument if that person has both physical possession of the...
