If a holder takes an instrument knowing it is defective,he is still a "protected" holder in due course if he acts promptly in correcting the defect.

Question

Quizplus · Accepted Answer

A holder cannot be considered a protected holder in due course if he knowingly takes possession of a defective instrument. The holder must take the instrument in good faith and without notice of any defects or problems.

If a Holder Takes an Instrument Knowing It Is Defective,he