The completion of an originally incomplete instrument in an unauthorized manner is not a defense against payment on the instrument to an HDC.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), an incomplete instrument can be completed in authorized ways, such as by the issuer or a holder in due course. However, completion in an unauthorized manner (i.e. without the issuer's consent) does not relieve the issuer of liability for payment to a holder in due course.

The Completion of an Originally Incomplete Instrument in an Unauthorized