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Marcia issued a negotiable note to Sam the Butcher to pay for goods. Sam negotiated the note to Alice, who negotiated the note to David.

Marcia issued a negotiable note to Sam the Butcher to pay for goods. Sam negotiated the note to Alice, who negotiated the note to David. David paid value for the note, and he took it in good faith. Which additional fact would not prevent David from being a holder in due course?

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One day after the note was negotiated to David, Greg informed David that the goods delivered to Greg were defective, and he had a breach of contract defense.

At the time the note was negotiated to David, David knew that the note had become due and that Greg had refused to pay it.

At the time the note was negotiated to David, David knew that Sam claimed ownership of the note because he had been defrauded into transferring it to Alice.

The note was due January 31, and Alice negotiated the note to David on December 31.

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