David makes and delivers a promissory note for $500 to the order of Kerry, who indorses the note and delivers it to Stan in payment of an outstanding debt Kerry owes him. Stan has given value as far as the Code requirements for a holder in due course.

Question

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Stan has given value for the promissory note by accepting it as payment for an outstanding debt, meeting the requirement for a holder in due course under the Uniform Commercial Code.

David Makes and Delivers a Promissory Note for $500 to the Order