Bella Contracted with Marco Furnishing to Complete the Work on Her

Multiple Choice

Bella contracted with Marco Furnishing to complete the work on her house by November 1, 2013. She gave Marco a negotiable promissory note in the amount of $20,000 payable to the order of Marco on November 1. Marco then negotiated the note to the bank. He, however, could not complete the work by November 1. In this scenario, which of the following statements is true if the bank is able to qualify as a holder in due course?

A) Bella is not liable to the bank because Marco breached the contract, not her.
B) The bank can collect the amount from Marco because he negotiated the note to the bank.
C) The bank can be held liable by Bella if she asserts personal defense against the bank as Marco did not complete the work on time.
D) Bella cannot assert personal defense against the bank and avoid payment as it was a negotiation, and not a simple contract.