Kripps, who is a holder in due course, buys a note made by Aldridge, who is under bankruptcy protection, to Huron Motors. Even though Aldridge's debt was discharged through bankruptcy, Kripps can collect on the note.

Question

Quizplus · Accepted Answer

A holder in due course cannot collect on a note if the maker's obligation was discharged in bankruptcy, as bankruptcy discharge is a valid defense against collection.

Kripps, Who Is a Holder in Due Course, Buys a Note