Connick was the payee of a note issued by Sisco for $3,000 that Sisco had postdated by two weeks. The due date of the note arrived and Connick offered to transfer it on that date to Horta for $2,890. If Horta buys the note for that price knowing of its irregularity, can he be a holder in due course of the note?
Yes! ...Connick has already transferred ownership to Horta. Connick's note had already arrived so by the due time, the note would have changed ownership. The holder of the note remains Connick untill arrival date because the note has irregularity as per the policy.