After endorsements in the instrument scenario, who is the present holder in due course?

• A. M
• B. P
• C. A
• D. B

Answer: (D)

The present holder in due course is the person who currently holds the instrument and took it in due course—meaning for value, in good faith, and without notice of any defenses against payment—before it became overdue. This status gives the holder stronger rights to enforce the instrument against prior parties.

In an endorsements chain, the one who meets all three conditions at the time they acquired the instrument becomes the present holder in due course. If B is the person who took the instrument for value, acted in good faith, and had no knowledge of any defects or defenses, then B qualifies as the present holder in due course. The other individuals would not be PHDC if they didn’t meet these criteria (for example, if they took for collection or with knowledge of a defect).