On January 1 Billy Carter issued a promissory note payable to "John Johnson" in the amount of $100,000 to be paid on December 1. (For purposes of this question, assume that the note satisfies the elements of negotiability.) On March 15 John Johnson negotiated the note by indorsement to "Susan Smith, without recourse" and received $75,000 from Susan Smith for the note. On July 1, Susan Smith gave the note to her boyfriend Fred Sanford as a gift on their one year dating anniversary and indorsed the note "Susan Smith". On December 1st Fred Sanford showed up at the home of Billy Carter demanding to receive payment of 100,000 dollars for the note. 

Question: At the time that Fred Sanford showed up at the home of Billy Carter on December 1 demanding to be paid for the note, did Fred Sanford have rights as a holder or rights as a holder in due course?