A person cannot become an HDC if a defense against payment is appar-ent on the face of the instrument.

Question

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According to the Uniform Commercial Code (UCC), a person cannot become a holder in due course (HDC) if a defense against payment is apparent on the face of the instrument, which means if there is any indication that the payment of the instrument may be challenged or disputed, it cannot be transferred to an HDC.

A Person Cannot Become an HDC If a Defense Against