Personal V Real Defenses 11 21 2013 H T H D C Holder who comes later in the chain of title after there has been a holder in due course but has not been a holder in due course themselves Personal A holder in due court will win against a personal defense or a holder in due court is not subject to personal defenses Ordinary Breach Of Contract Defenses Fraud In The Inducement Fraud statement about the involved product or service Conditional Delivery Unauthorized Completion Theft Of A Bearer Instrument Real A holder in due court will lose against a real defense Forgery Fraud As To The Nature Of The Paper Illegality Alteration F T C Federal Trade Commission Rule Consumer protection law if you sign a document to pay it over time for the purchases of personal family or household use the holder of due course rules do not apply Primary Liability On a promissory note the maker is said to have primary liability An absolute obligation to pay on the due date Secondary Liability Drawers and endorsers or an obligation to make good on a check that payment has been refused on Presentment last holder gives the check to the bank for payment Dishonor When the bank refuses to make payment Notice of Dishonor Goes back to the drawer
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