A check given in Colorado (where gambling is illegal)to pay a gambling debt in Nevada (where gambling is legal)provides a real defense to payment,even against a holder in due course.

Question

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In Colorado, gambling debts are unenforceable, and this defense can be used against a holder in due course if the check was issued in Colorado for a gambling debt, even if the debt was incurred in a state where gambling is legal.

A Check Given in Colorado (Where Gambling Is Illegal)to Pay