A person cannot be held liable, even by a holder in due course, if he or she signs an instrument that is apparently not negotiable and the paper is later fraudulently converted into a(n):

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If a person signs an instrument that is apparently not negotiable, they cannot be held liable if the paper is later fraudulently converted into a negotiable instrument. This is because the person did not intend to create a negotiable instrument in the first place and was not aware that the instrument could be converted into one. A holder in due course would also not be able to hold the person liable in this situation.

A Person Cannot Be Held Liable, Even by a Holder