A defense against payment of commercial paper that may be used against any party EXCEPT a holder in due course is called:

Question

Quizplus · Accepted Answer

A personal defense can be used against any party except a holder in due course. Examples of personal defenses include forgery, fraud, duress, and illegality. Specific defenses are defenses that pertain to the particular instrument at issue, while special defenses are based on the nature of the underlying transaction. Commercial defense is not a recognized term in the context of negotiable instruments.

A Defense Against Payment of Commercial Paper That May Be