The Pierces purchased siding for their home from the Globe Remodeling Company, Inc. They gave a promissory note for $3,044.40 in payment. In exchange, they were to receive sufficient siding for the job, properly installed, together with $1,200 in cash. Globe indorsed the note to the Gramatan Company, Inc. Gramatan then sold it without indorsement to its affiliate, the plaintiff, Gramatan National Bank, for $2,250. The bank had previously placed Globe on its “precautionary list” because it knew that in other sales, Globe had not performed as promised. The bank also knew that similar Globe notes were being litigated and that federal law enforcement officials had been investigating Globe’s activities. In this case, only about $400 had been paid to the Pierces. In addition, only about one-half the siding had been delivered, and none had been installed. The Pierces refused to pay the note, and the bank sued. Is the bank a holder in due course? (Gramatan National Bank and Trust Co. v. Pierce, 159 A.2d 781)