Defenses against Enforcement
Learn about personal defenses, which generally cannot be asserted against a holder in due course, and real defenses, which can be.
Transcript
If a person is entitled to enforce a negotiable instrument, then that person may present the instrument for payment. However, such presentment is subject to any defense or counterclaim raised by the issuer.
The primary benefit of being a holder in due course is that a holder in due course takes the instrument free of nearly all defenses and claims against enforcement. Notice we said nearly all. Although a holder in due course takes the instrument free of third parties’ claims and personal...