Glenn indorsed his paycheck by signing just his name and cashed it at the grocery store.The check was stolen from the store, indorsed in a false name and transferred to a convenience store.The convenience store could not be a holder in due course since the check had been stolen and indorsed with a false name.

Question

Quizplus · Accepted Answer

A holder in due course can still exist if the convenience store took the check in good faith, for value, and without notice of any defect or claim, even if the check was stolen and indorsed with a false name.

Glenn Indorsed His Paycheck by Signing Just His Name and Cashed