What is the effect of Susan receiving notice the day after she cashed the check for Bob that the check had been stolen?
A) The notice has no effect on her status as holder in due course because it was provided after she cashed the check.
B) The notice prevents her from being a holder in due course.
C) The notice prevents her from being a holder in due course only if Bob had been convicted of check cashing offenses in the past since she should have checked his criminal record.
D) The notice prevents her from being a holder in due course only if she subjectively knew that Bob had been charged criminally with check cashing violations in the past.
E) The notice prevents her from being a holder in due course because it was presented to a business; only individuals can avoid the effect of notice of theft by cashing a check prior to receiving notice.

Question

Quizplus · Accepted Answer

Regarding notice of claims or defenses that will prevent holder in due course status, the UCC states that "to be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it" [3-302(f)].

What Is the Effect of Susan Receiving Notice the Day