Which of the following statements indicates an exception to the shelter principle?

It discourages the marketability of instruments and direct financial interactions.

The instrument needs to be transferred directly from a holder in due course for a holder to acquire the rights and privileges of a holder in due course (HDC).

The holder of an instrument cannot acquire the rights of a holder in due course if he demonstrates that someone through the line of transfers had obtained these rights.

It prevents a person who engages in fraud with an instrument from becoming a holder in due course (HDC), even if he or she obtains the instrument later from an HDC.