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      Question

      Under Section 118(d), the presumption as to the time of

      transfer of a negotiable instrument is that every transfer was made:
      A After its maturity Correct Answer Incorrect Answer
      B Before its maturity Correct Answer Incorrect Answer
      C On the date of its dishonour Correct Answer Incorrect Answer
      D Only with the consent of the maker Correct Answer Incorrect Answer
      E Without consideration Correct Answer Incorrect Answer

      Solution

      Section 118(d) provides the presumption that every transfer of a negotiable instrument was made before its maturity, until the contrary is proved. This presumption supports the rights of the transferee, since an instrument transferred before maturity may confer holder-in-due-course status. Coupled with the other presumptions in Section 118 (such as consideration and that the holder is a holder in due course), it places the initial burden of disproof on the party challenging the instrument.

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