Holder in Due Course - Notice of Valid Defense

The video tutorial explains the requirements for becoming a holder in due course, emphasizing the need for the holder to be unaware of any defenses against the enforcement of the instrument. It outlines potential defenses, such as overdue drafts and fraudulent alterations, and notes that certain individuals, like those involved in bulk transfers, are excluded from obtaining holder in due course status. The tutorial also highlights common law limitations on closely related individuals.

What are some situations where individuals may not obtain holder in due course status?

How might a close personal or business relationship affect the ability to become a holder in due course?