Ernie is the of negotiable promissory note payable to Bert in the amount of $25,000.00. The is payable on or before July 1. On May 15. makes a note payment to Bert for $12,000.00. However, the face of the note does not show the part paymentOn June 20, Bert negotiates the note to Cookie, who pays $20,000.00 for the note, takes it in good faith and has no notice that Ernie has made a part payment, and has no notice that the note is overdue of any defense against the note. Then on 15, Cookie negotiates the note to Bird, who pays $21,000.00 the note. When Bird presents the note to demands 25,000.00Emie contends that he is entitled to a set-off of 12,000.00 and that therefore only owes \$13,000.00 on the note

A. Erneie=s defense of set-off can be asserted against Bird because Bird is not a holder in due course.

B. Bird is a holder in due course. Therefore evidence of Ernie s defense of set-off is not admissible against Bird