Trisha loaned Brian $600 evidenced by a promissory note.When Brian paid off the loan,he did not ask Trisha for the note.She sold it to Carin,a holder in due course.Brian does not have to pay Carin since he already paid Trisha the full $600.

Question

Quizplus · Accepted Answer

As a holder in due course, Carin has legal rights to the promissory note and can demand payment from Brian even if he already paid Trisha. However, Brian may have some legal recourse to recover his payment from Trisha if he can prove he already paid off the loan.

Trisha Loaned Brian $600 Evidenced by a Promissory Note