The holder in due course is not entitled to payment on a consumer note when the drawer can establish a good defence against the payee.

Name: The holder in due course is not entitled to payment on a consumer note when the drawer can establish a good defence against the payee.
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Question

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In consumer transactions, the holder in due course doctrine is limited, allowing the drawer to assert defenses against the holder that could be asserted against the payee.

The Holder in Due Course Is Not Entitled to Payment