Requirements for HDC Status

Gary Lindner stole two signed cashier's checks from a loan officer's desk at Lincoln First Bank, N.A. Lindner wrote $200,000 as the amount of one check and $300,000 as the amount of the other, and made them payable to the order of his brother-in-law. Posing as his brother-in-law, Lindner presented the checks to the Golden Nugget Casino. A casino employee who contacted Lincoln First was told that the $200,000 check was "good," that there were adequate funds to cover it, and that there was no stop payment order on the $300,000 check. Lindner gambled away most of the money before Lincoln stopped payment on the checks. The owner of the Golden Nugget filed a suit in the New York state court against the bank to recover the $500,000. When the court denied Golden Nugget's motion for summary judgment, Golden Nugget appealed. Had the Golden Nugget Casino taken the checks in good faith, as required for HDC status? Why or why not?