Philip uses a signature stamp to sign his checks and carelessly leaves it accessible to third parties.Jeremy finds the stamp and uses it to write several checks without Philip's authorization.Renee, who takes a check for value and in good faith, will be subject to Philip's defense of unauthorized signature.

Question

Quizplus · Accepted Answer

Renee, as a holder in due course, is protected from personal defenses such as unauthorized signature, provided she took the check for value, in good faith, and without notice of any defect.

Philip Uses a Signature Stamp to Sign His Checks and Carelessly