Jerry Hall makes out a note for $100 in such a way that someone could alter it to read $10,000.Someone alters the note and negotiates it to Pete Mason,who can qualify as a holder in due course.Which of the following statements is true?
A)Jerry shall share the loss with the bank where she holds an account.
B)Jerry does not have to pay Pete who currently possesses the note.
C)Pete can collect $10,000 from the person who "raised" the note.
D)Pete can collect $10,000 from Jerry.

Question

Quizplus · Accepted Answer

If a person has been negligent,Article 3 of the UCC precludes her from using the alteration or lack of authorization as a reason for not paying a person that in good faith pays the instrument or takes it for value.

Jerry Hall Makes Out a Note for $100 in Such