Parkdale Roofing Company receives a check from Quik Mart for fixing its roof, and indorses the check to Repair Supplies, Inc. (RSI). Stef, RSI's owner, gives the check to Tiny as a gift. In this situation, the party who is not an HDC of the check but who acquires HDC rights under the shelter principle is

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Aussie

Law

21 May, 13:02

Parkdale Roofing Company receives a check from Quik Mart for fixing its roof, and indorses the check to Repair Supplies, Inc. (RSI). Stef, RSI's owner, gives the check to Tiny as a gift. In this situation, the party who is not an HDC of the check but who acquires HDC rights under the shelter principle is

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Kirsten Sweeney · Answer 1

The third party, this rull will allow the transferee to recive all the rights of the transferor.

Explanation:

Holder in Due Course (HDC) is the holder of a negotiable instrument to a higher status. Someone that posseses and is entitled to receive payment of an instrument.

It can be transer or negotiate to a third party.