As you may recall from another lesson, to attain holder-in-due-course status, a person must be the instrument’s holder, take the instrument for value and in good faith, and take the instrument without notice of various problems affecting the instrument’s enforceability.

We’ve already discussed the first three requirements; now, let’s look at the last one.

I. Taking without Notice

To be a holder in due course, the holder must take the instrument without notice of various problems affecting the...