Question

Under Section 118(d), the presumption as to the time of transfer of a negotiable instrument is that every transfer was made:

Q: Answer-Under Section 118(d), the presumption as to the time of transfer of a negotiable instrument is that...

Section 118d 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.