A holder in due course may be subject to which the following defenses?
A)Duress.
B)Forgery.
C)Fraud in the inducement in the underlying contract.
D)Unauthorized completion of the instrument.
E)Lack of consideration.

Question

Quizplus · Accepted Answer

A)A party who is aware of any claim or defense to an instrument has notice and
cannot become an HDC [UCC 3-302a)2)v),vi)].However,a party who had no reason to know various claims or defenses applied to an instrument,even though they exist,is not prevented from becoming an HDC.Forgery is listed as a "real" defense that an HDC may be subject to,even if unaware.
B)A party who is aware of any claim or defense to an instrument has notice and cannot become an HDC [UCC 3-302a)2)v),vi)].However,a party who had no reason to know various claims or defenses applied to an instrument,even though they exist,is not prevented from becoming an HDC.Forgery is listed as a "real" defense that an HDC may be subject to,even if unaware.
C)A party who is aware of any claim or defense to an instrument has notice and cannot become an HDC [UCC 3-302a)2)v),vi)].However,a party who had no reason to know various claims or defenses applied to an instrument,even though they exist,is not prevented from becoming an HDC.Forgery is listed as a "real" defense that an HDC may be subject to,even if unaware.

A Holder in Due Course May Be Subject to Which