A taker of an instrument who is a holder in due course at the time of the transfer, but who thereafter learns of a defense:
A) becomes a holder through a holder in due course.
B) becomes an ordinary holder.
C) remains a holder in due course.
D) becomes an assignee.

Question

Quizplus · Accepted Answer

A holder in due course retains their status even if they later learn of a defense against the instrument. This status provides protection against certain claims and defenses that might otherwise be raised by prior parties.

A Taker of an Instrument Who Is a Holder in Due