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Drill Bit Company Issues a Check Drawn on East Bank

Question 60

Multiple Choice

Drill Bit Company issues a check drawn on East Bank made payable to Faux Products for a shipment of Genuine-brand machine parts. Drill Bit discovers that the goods are counterfeit and orders East Bank not to pay the check. Meanwhile, Faux negotiates the check to Haul-Away Trucking, which takes it in good faith, for value, and unaware of Faux's fraud. Entitled to payment on the check is


A) no one.
B) ordinary holders, including Haul-Away, only.
C) ordinary holders, HDCs, and holders through HDCs.
D) HDCs, including Haul-Away, only.

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