Tex fraudulently sold a boat, to which he did not have title, to Sheryl for $30,000

and received, as a deposit from her, a check in the amount of $5,000. He deposited

the check in his account at First Bank and immediately withdrew $3,000 of the

proceeds. When Sheryl discovered that Tex had no title, she called her bank (the

drawee) and stopped payment on the check. Tex, in the meantime, disappeared.

First Bank now wishes to collect the $3,000 from Sheryl, but she claims it is not an

HDC because it did not give value for the check in that the payment to Tex was

conditional: the bank retained the right to collect from Tex if it could not collect on

the check. Is Sheryl correct? Explain.