Stebbins transferred a promissory note to Hall when the note was past due. Hall knew that the note was past due. This transfer

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Quizplus · Accepted Answer

A holder cannot become a holder in due course if the instrument is acquired when it is overdue. Knowing that the note was past due, Hall could not obtain the status of a holder in due course, which offers certain protections against defenses and claims to the instrument. The transfer does not relieve or limit the maker's liability, nor does it give Hall a better title than Stebbins had.

Stebbins Transferred a Promissory Note to Hall When the Note