Business law

#2&3

Siegman, a diamond merchant, issued a note for diamonds purchased. The seller endorsed the note to a bank "as collateral for his pre existing obligations to the banks and as collateral for the diamonds shipped to defendants." Did the bank give value so as to qualify as a holder in due course? Explain. 2. 3. A bank received a check to deposit in Seve's account. Seve subsequently wrote checks withdrawing most of the proceeds of the deposited check. The bank paid these checks before receiving notice that the deposited check was dishonored. Does the bank qualify as a holder in due course? Explain