Fact Pattern 25-1B

Multiple Choice

Fact Pattern 25-1B
First Bank's account agreement states that deposited items will be given pro?vi?sional credit only until collection is final, but the bank's practice is to extend immediate credit.
-Refer to Fact Pattern 25-1B. Suppose First Bank has no rea?son to suspect there would be a problem if immediate credit is extended on an item on which, in fact, there is an outstanding stop-payment order. According to the court's decision in Case 25.3, Mid Wisconsin Bank v. Forsgard Trading, Inc., with respect to this item, First Bank would be

A) a holder, but not an HDC.
B) an HDC.
C) an HDC as against all parties except the item's depositor.
D) an HDC as against all parties except the item's drawer.