Bruce acquires a series of notes with successive maturity dates that Cody issued on May 15 for a loan from Delta Credit, Inc. At the time of Bruce's acquisition, he learns that Cody defaulted on one of the notes. Bruce is
A) an HDC if he reacquires the notes after their negotiation to any un?suspecting third party.
B) an HDC only with respect to the notes on which Cody has not defaulted.
C) an HDC with respect to all of notes.
D) not an HDC.

Question

Quizplus · Accepted Answer

Bruce is not a holder in due course (HDC) because he is aware of Cody's default on one of the notes at the time of acquisition, which disqualifies him from HDC status.

Bruce Acquires a Series of Notes with Successive Maturity Dates