If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.

Question

Quizplus · Accepted Answer

Green, as a holder in due course, has rights superior to those of Jones because Green takes the note free from many defenses that could be asserted against Jones, assuming Green meets the requirements for a holder in due course under the Uniform Commercial Code.

If Jones Receives a Promissory Note from Smith, Who Passes