A bank customer purchased a bank money order and paid for it with a forged check. The

Question:

A bank customer purchased a bank money order and paid for it with a forged check. The money order was negotiable and was acquired by N, who was a holder in due course. When N sued the bank on the money order, the bank raised the defense that its customer had paid with a bad check. Could this defense be raised against N? Why or why not? [Bank of Niles v American State Bank, 303 NE2d 186 (Ill App)]

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Anderson's Business Law And The Legal Environment

ISBN: 9780324638189

20th Edition

Authors: David P Twomey, Marianne M Jennings, Ivan Fox

Question Posted: