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Review the case of the bankruptcy

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Reference no: EM131675536

Question: In this bankruptcy case, the court had to determine whether an LLC should have been considered a purchaser of instruments or a holder in due course under the UCC. Yale, the company that purchased the instruments through bankruptcy, did not establish that it acted in good faith in purchasing the instruments by observing reasonable commercial standards of fair dealing. However, Yale was a holder of a complete and authentic negotiable instrument and took the instrument for value. Based on these facts, can Yale be a holder in due course of the instruments? If not, what requirement(s) for being a holder in due course is (are) not met?

Reference no: EM131675536

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