Now is an ideal time to bring together all of the concepts you have learned in Chapters 26, 27, and 28. Analyzing this problem will help you integrate your knowledge about negotiable instruments. Sid’s Salmon has purchased salmon from Fred’s Fisheries. Sid wrote a check for $22,000 to Fred’s. A thief broke into Fred’s offices and took the cash on hand as well as the unindorsed check from Sid’s. The thief took the check to the Corner Check Cashing Company (CCCC) and received $22,000 less the cashing fee of $2,000. Fred notified Sid, who then notified First Commerce Bank, the drawee of the check, of the theft. CCCC has presented the check for payment, and First Commerce refuses to pay. CCCC says it is a holder in due course.

Are you able to help First Commerce Bank develop its response to CCCC? Suppose that Fred had already indorsed the check when the thief stole it. Would CCCC be a holder in due course?