D is corrent because in order for someone in possession of a negotiable instrument to qualify as a holder, it is necessary that he receive the instrument through proper negotiation. Proper negotiation of bearer paper requires nothing more than the mere delivery of the instrument to the holder. Thus, in order to qualify as a holder of bearer paper, the transferee need only have physical possession of the instrument.
A is incorrect because the taking of an instrument before receipt of notice of a defense is a requirement to obtain holder in due course status. It is not a necessary requirement in order to become a holder of a bearer instrument.
B is incorrect because proper negotiation of bearer paper requires nothing more than the mere delivery of the instrument to the holder; thus, the holder need not give value for the instrument.
C is incorrect because the taking of an instrument in good faith is a requirement to attain holder in due course status, but it is not a requirement to become a holder of a bearer instrument.
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