A payee/endorser in possession of a bill that he obtained after giving consideration for it is called:

A. A drawer
B. An accommodation party
C. An assignee
D. A holder for value
E. A trustee

 

Answer:

D. A holder for value

 

Explanation:

A “holder for value” is someone who holds a bill of exchange or other negotiable instruments after giving value or consideration for it. This legal term ensures that the holder has a legitimate right to claim payment on the instrument, provided that it was acquired in good faith. This distinguishes a holder for value from parties such as an accommodation party, who may not have given consideration.