Ray Patel, a Local DJ, Bought Sound Equipment from Backstage

Ray Patel, a local DJ, bought sound equipment from Backstage Equipment Inc. and paid by three post-dated cheques of $10,000 each. Backstage took out a loan for $30,000 and endorsed the cheques to its bank as security for the loan. The equipment totally failed and Patel wants to stop payment against the bank. Will he be successful?

A) Yes, because the equipment did not work.
B) Yes, if he put a stop payment before the due dates on the cheques
C) No, because the bank is a holder in due course.
D) No, because the bank actually lent $30,000 to Backstage.
E) No, because the bank has a loan agreement with Backstage.