Use the I$-$R$-$A$-$C format for each of your responses. Make sure to fully define any BUS $2040$ terms. State the rules clearly. Do not mix application into the Rules section.

Ch$.26$ Transferability and Holder in Due Course: In order to

expand to a second location in Macomb County, Flora$$s Flowers

obtains a loan from Vinnie$$s Venture Capital $($VVC$).$ The loan takes

the form of a merchant capital advance $($MAC$).$ The flower shop

agrees to repay the MAC according to a certain percentage of gross

sales per month, meaning that the payments vary with the amount of

business. On behalf of Flora$$s Flowers, Lily Rose signs a note

payable to VVC$,$ which subsequently indorses the note and transfers

it to Cash Flow Catalysts $($CFC$).$ Due to unexpected and costly

repairs to the flower coolers and air conditioning unit at Flora$$s

Flowers$$ Macomb location, several monthly payments on the note

were skipped. Cash Flow Catalysts files a claim with a court for an

order to collect funds from the flower shop$$s bank account. Lily Rose

argues that she did not sign any document promising to pay Cash

Flow Catalysts, so their claim is invalid. Please explain why Cash

Flow Catalysts can or cannot enforce the note