Which of the Following Is True Regarding the Bank Manager's

Multiple Choice

Which of the following is true regarding the bank manager's statement that the bank was a holder in due course,and that stop-payment orders could not affect the right of a holder in due course to collect?

A) The bank manager is wrong.
B) The bank manager is correct only if he can establish that the bank employee who actually paid the check had no knowledge of the stop-payment order.
C) The bank manager is correct unless Elaine can affirmatively prove that the bank employee who actually paid the check had knowledge of the stop-payment order.
D) The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry.
E) The bank manager is correct unless Elaine can prove fraud in the factum on the part of BIG Jewelry and that the bank was aware of the fraud.