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Cecelia obtains a negotiable instrument for value, in good faith, and without notice of it being defective, overdue, subject to claims or defenses, having been

Cecelia obtains a negotiable instrument for value, in good faith, and without notice of it being defective, overdue, subject to claims or defenses, having been dishonored or that any signature is unauthorized. She signs her name on the back of the instrument and gives the instrument to her grandson Mathew for a birthday present. What is the effect?

A.

Because Mathew didn't pay value for the instrument, the instrument is no longer a negotiable instrument.

B.

Mathew is not a holder in due course but obtained the rights of a holder in due course because of the shelter rule.

C.

Mathew will take the negotiable instrument free of real defenses.

D.

Mathew is a holder in due course.

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