Sally is a holder in due course of a promissory note signed by Bill. Bill wants to avoid paying Sally by claiming a failure of consideration in regard to the transaction with Alice in which the negotiable instrument was initially issued. Which of the following is true regarding that defense?

Multiple Choice

Lack of consideration is a real defense which may be asserted against a holder in due course such as Sally.

Lack of consideration is a personal defense which may be asserted against a holder in due course such as Sally.

Lack of consideration is a personal defense which may not be asserted against a holder in due course such as Sally.

Lack of consideration is a real defense which may not be asserted against a holder in due course such as Sally.