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Question
Carol signs a 30-day note payable to Chrome Appliances for $500 and gives it to Chrome as payment for a stereo set. When Chrome asks Carol for payment, she refuses to pay because the stereo does not work properly. Chrome then negotiates the note to a bank informing it of Carol's refusal to pay. Under this scenario, which of the following statements is true?
A. The bank is not a holder in due course of the note.
B. The bank is a holder in due course of the note.
C. Dishonoured instruments always make the indorser the holder.
D. Chrome is the holder in due course.
Answer
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Related questions
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