While HDC status provides immunity from personal defenses or claims in recoupment, it does protect an HDC from being subjected to any real defenses.

Question

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An HDC (Holder in Due Course) is protected from most personal defenses but is still subject to real defenses such as fraud in the factum, incapacity, illegality, duress, and certain other defenses that can invalidate the obligation.

While HDC Status Provides Immunity from Personal Defenses or Claims