Felicia,an elderly woman,does not speak or read English well.Felicia is a recent immigrant to this country.A dishonest immigration officer tells Felicia to sign several documents as being necessary to maintain her legal immigration status.Unknown to Felicia,she signs a promissory note.The immigration officer thereafter sells the note to Neighborhood Bank,a holder in due course,who goes after Felicia for payment of the note.Felicia's defense to the Neighborhood Bank is

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Felicia's defense is fraud in the execution, also known as fraud in factum. This defense arises when a person signs a document without knowledge or understanding of its nature, character, or contents. Felicia did not know that the document she signed was a promissory note, so her signature was obtained by fraud. As a result, she can assert this defense against Neighborhood Bank, even though it is a holder in due course.

Felicia,an Elderly Woman,does Not Speak or Read English Well