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

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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)]

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Andersons Business Law and the Legal Environment

ISBN: 978-0324786668

21st Edition

Authors: David p. twomey, Marianne moody Jennings

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