Quick law question before my final!! (UCC Article 3)

I am not 100% clear on the following after reviewing my text book and notes:

- Holder in due course and the holder in recourse- can someone explain basically what they are and the parties involved?

-Guarantor and collection guarenteed?

Thank you very much!

 

Thanks guys, so I know understand:

holder in due course
n. one holding a check or promissory note, received for value (he/she paid for it) in good faith and with no suspicion that it might be no good, claimed by another, overdue or previously dishonored (a bank had refused to pay since the account was overdrawn). Such a holder is entitled to payment by the maker of the check or note.

guarantor
n. a person or entity that agrees to be responsible for another's debt or performance under a contract if the other fails to pay or perform.

However, I'm still struggling with "collection guaranteed", and "holder in due recourse"-- now I'm stuck on an "accomodation maker"? Sorry for the inconvenience!

Thank you again!

 

Well if anyone cared, it SEEMS an accomodation maker is a co-signer, basically someone who signs the back of anothers check and is liable if the payment doesn't go through. A guarantor is a very similar but has more protection against being liable and then an accomodation maker.

A holder in due course cannot be defended against personal defenses (i.e. fraud in the inducement), only real defenses (i.e. fraud in fact).

Enjoy! If I'm wrong, please correct me, even if it's after the test...