Vicki Graves
Negotiable Instruments Short Paper
The court’s decision is fair. A $10,000 check is a large enough amount that Any Kind
should have required further confirmation from the maker, especially since they did
confirm the second check of the lesser amount, $5,700, with the maker. Because they did
not require further validation they lost their holder in due course status with the $10,000
check.
For Any Kind to have maintained their HDC status with either of the checks they must
meet four requirements: value, good faith, ignorance of the instrument’s being overdue or
