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Bryan fraudulently induces Scott into making a note payable to the order of Greg, to whom Bryan was indebted. Bryan delivered the note to Greg

Bryan fraudulently induces Scott into making a note payable to the order of Greg, to whom Bryan was indebted. Bryan delivered the note to Greg to satisfy his indebtedness to Greg. Greg negotiated the instrument to Lew, who purchased it with knowledge of the fraud and that it was overdue. If Greg qualifies as a holder in due course, which of the following statements is true?

A.

Lew personally qualifies as a holder in due course.

B.

Lew has the standing of a holder in due course through Greg as a result of the shelter rule.

C.

Scott can successfully assert the defense of fraud in the inducement against Lew.

D.

Scott can successfully assert the defense of fraud in the inducement against Greg.

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