When John Deere, however, presented the check to the bank for payment shortly thereafter, the bank refused to pay, claiming that Duester acquired the cashier’s check by theft. Is John Deere subject to this defense? Why or why not?
Walter Duester purchased a John Deere combine from St. Paul Equipment. John Deere Co. was the lender and secured party under the agreement. The combine was pledged as collateral. Duester defaulted on his debt, and the manager of St. Paul, Hansen, was instructed to repossess the combine. Hansen went to Duester’s farm to accomplish this. Duester told him that he had received some payments for custom combining and would immediately purchase a cashier’s check to pay the John Deere debt. Hansen followed Duester to the defendant, Boelus State Bank. Hansen remained outside, and Duester returned in a few minutes with a cashier’s check in the amount of the balance of his indebtedness payable to John Deere. The check had been signed by an authorized bank employee. When John Deere, however, presented the check to the bank for payment shortly thereafter, the bank refused to pay, claiming that Duester acquired the cashier’s check by theft. Is John Deere subject to this defense? Why or why not?
Object JD took the instrument for value, for the payment of debt, in good faith, without being aware of the argument or defense existing against the instrument. It grants Object JD the status of a holder in due course. The defense of Individual A against Object JD, which is that of the theft of cashier's check, is personal in nature. No defenses that are personal in nature are valid against a holder in due course. If Individual H had any other valid defenses against Object JD or if Object JD had lost the position of a holder in due course, Object JD would then have been liable to Individual H.
Object JD is not subject to the defense since it is a holder in due course. The defense by Individual H is useless here since it is personal in nature. If Object JD was not a holder in due course, the defense of theft of the cashier's check would have been valid against Object JD.
The Best Research Paper Writing Service
Would you want to pay someone to write your paper professionally from scratch? 100% Original and 0% AI Content!.