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unqualified indorser
an indorser who signs an unqualified indorsement to an instrument.
qualified indorsement
an indorsement that includes the notation "without recourse" or similar language that disclaims liability of the indorser.
qualified indorser
an indorser who signs a qualified indorsement to an instrument.
nonrestrictive indorsement
an indorsement that has no instructions or conditions attached to the payment of the funds.
restrictive indorsement
an indorsement that contains some sort of instruction from the indorser.
indorsement for deposite or collection
an indorsement that makes the indorsee the indorser's collecting agent. (eg"for deposit only")
holder
a person who is in possession of a negotiable instrument that is drawn, issued, or indorsed to him or his order, or to bearer, or in blank.
holder in due course (HDC)
a holder who takes a negotiable instrument for value, in good faith, and without notice that it is defective or overdue.
taking for value requirement
a requirement that says a holder must give value for a negotiable instrument in order to qualify as an HDC.
taking in good faith requirement
a requirement that says a holder must take the instrument in good faith in order to qualify as an HDC.
time instrument
an instrument that specifies a definite date for payment of the instrument
demand instrument
an instrument payable on demand.
dishonored instrument
and instrument that is presented for payment and payment is refused.
red light doctrine
a doctrine that says a holder cannot qualify as an HDC if he or she has notice of an unauthorized signature or an alteration of the instrument or any adverse claim against or defense to its payments.
no evidence of forgery, alteration, or irregularity requirement
a requirement that says a holder cannot become an HDC to an instrument that is apparently forged or altered or is so otherwise irregular or incomplete as to call into question its authenticity.
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