Personal and real defenses are valid against an ordinary holder;only real defenses can be used against a holder in due course.

Question

Quizplus · Accepted Answer

Personal defenses are based on the relationship between the parties involved in the transaction and are only effective against an ordinary holder, while real defenses are based on the underlying transaction and can be used against both an ordinary holder and a holder in due course.

Personal and Real Defenses Are Valid Against an Ordinary Holder;only