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U.C.C. Article 3 Suretyship And The Holder In Due Course: Requiem For The Good Samaritan,, John D. Wladis

John D Wladis

Article 3 of the Uniform Commercial Code accords valuable privileges both to the holder in due course and to the surety who signs his principal's note. When the holder in due course sues the surety on the note, however, a conflict inevitably arises between these two typically innocent parties. The conflict is most acute when the surety attempts to assert a real defense of his principal against the holder in due course. In this article, Professor Wladis explores the reasons for favoring one party or the other in the context of various real defenses. The balance of policy considerations, according …