Who is a Holder of a Negotiable Instrument?

The video tutorial explains the concept of a holder in the context of commercial paper, detailing the differences between order paper and bearer paper. It describes how possession and entitlement to enforce the instrument define a holder. The tutorial also covers the process of transferring paper and the negotiation required for someone to become a holder. Exceptions, such as forgery, are discussed, highlighting when possession does not equate to being a holder.

What are the two essential elements that define a holder of commercial paper?

• Possession and ability to negotiate

• Possession and entitlement to enforce

• Ability to transfer and possession

• Entitlement to enforce and ability to transfer

How is bearer paper different from order paper?

• Order paper is not made out to anyone in particular

• Bearer paper is made out to a specific person

• Bearer paper can be enforced by anyone in possession

• Order paper can be enforced by anyone in possession

What must occur for a new person to become a holder of a commercial paper?

• The paper must be registered

• The paper must be endorsed

• The paper must be physically transferred

• The paper must be validly negotiated

In what situation does a thief become a holder of bearer paper?

• When the paper is endorsed

• When the paper is stolen

• When the paper is validly negotiated

• When the paper is registered

Why is a person in possession of a forged instrument not considered a holder?

• Because the instrument is not physically transferred

• Because the instrument is not registered

• Because the instrument is not endorsed

• Because the instrument is not validly made