Elvin fraudulently induces Frank,a consumer,to sign a promissory note to buy a speedboat.Elvin sells the note to Gaston,who takes it for value,in good faith,and without knowledge of the fraud.With respect to the defense against payment on the note to Elvin,Frank can

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Frank can assert the defense of fraud against Elvin, but not against Gaston, who purchased the note in good faith and for value. The sale of the note to Gaston transferred ownership and the right to collect payment on the note. Therefore, Frank cannot use this defense against Gaston.

Elvin Fraudulently Induces Frank,a Consumer,to Sign a Promissory Note to Buy