If Jones receives a promissory note from Smith and passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

Question

Quizplus · Accepted Answer

Green, as a holder in due course, has rights superior to those of Jones because a holder in due course takes the note free from many defenses that could be asserted against the original payee, Jones.

If Jones Receives a Promissory Note from Smith and Passes