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Question
Fact Pattern 25-1First Bank's account agreement states that deposited items will be given provisional credit only until collection is final, but the bank's practice is to extend immediate credit.
Refer to Fact Pattern 25-1. Suppose First Bank has no reason to suspect there would be a problem if immediate credit is extended on an item on which, in fact, there is an outstanding stop-payment order. According to the court's decision in Case 25.2, Mid Wisconsin Bank v. Forsgard Trading, Inc., with respect to this item, First Bank would be
a. a holder, but not an HDC.
b. an HDC.
c. an HDC as against all parties except the item's depositor.
d. an HDC as against all parties except the item's drawer.
Answer
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