If a holder learns of a defense after acquiring an instrument, the knowledge works retroactively to destroy the holder's character as a holder in due course.

Question

Quizplus · Accepted Answer

A holder's status as a holder in due course is determined at the time of acquisition of the instrument. Learning of a defense after acquiring the instrument does not retroactively affect the holder's status or rights as a holder in due course.

If a Holder Learns of a Defense After Acquiring an Instrument