Understanding Business and Personal LawChapter 26: Collecting Negotiable InstrumentsChapter OverviewsReady to Learn? When an instrument is properly negotiated, the person to whom it is transferred is a holder. Only a holder can collect the money that is due on an instrument. A holder in due course is a holder who takes an instrument for value, in good faith and without notice. Liability refers to the responsibility for paying the instrument. The Uniform Commercial Code (UCC) divides the liability of the parties into two groups: primary liability and secondary liability. As you study this chapter, you will learn not only about the parties and defenses to negotiable instruments, but gain a clearer understanding of the liability of the parties. |  |
