Rafe signs a check payable to Shop Mart, which transfers the note by negotiation to Trans-State Bank. With respect to any defenses to payment on the note that Rafe could have raised against Shop Mart, most likely Rafe can
A)raise those defenses against the bank.
B)no longer present any defense to payment.
C)not assert those defenses against the bank.
D)claim more defenses against the bank than Shop Mart.

Question

Quizplus · Accepted Answer

Trans-State Bank, as a holder in due course (assuming it meets the criteria), takes the note free from most claims and defenses that Rafe could assert against Shop Mart. This means Rafe generally cannot assert those defenses against the bank.

Rafe Signs a Check Payable to Shop Mart, Which Transfers