If the taker is negligent in not discovering that something was wrong with the instrument, it establishes lack of good faith.

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Today, a party claiming to be a holder in due course must prove good faith by acting in a way that demonstrates "conduct that meets reasonable commercial standards of fair dealing." This standard is also supported by a two step test: (1) according to the commercial standards of the industry, and (2) those commercial standards must themselves be reasonable. Moreover, any attempt to apply the two requirements must be placed within the context of the individual transaction under scrutiny.

If the Taker Is Negligent in Not Discovering That Something