MARVIN MANDEL, Governor                                  165

(4) Knowledge of the following facts does not of
itself give the purchaser notice of a defense or claim

(a)    That the instrument is antedated or
postdated;

(b)    That it was issued or negotiated in
return for an executory promise or accompanied by a
separate agreement unless the purchaser has notice that a
defense or claim has arisen from the terms thereof;

(c)     That any party has signed for
accommodation;

(d)   That an incomplete instrument has been
completed unless the purchaser has notice of any improper
completion;

(e)     That any person negotiating the
instrument is or was a fiduciary;

(f)   That there has been default in payment of
interest on the instrument or in payment of any other
instrument, except one of the same series.

(5)    The filing or recording of a document does not
of itself constitute notice within the provisions of this
[subtitle] TITLE to a person who would otherwise be a
holder in due course.

(6)   To be effective notice must be received at such
time and in such manner as to give a reasonable
opportunity to act on it.

3—305. Rights of a holder in due course.

To the extent that a holder is a holder in due
course he takes the instrument free from

(1)   All claims to it on the part of any person; and

(2)    All defenses of any party to the instrument
with whom the holder has not dealt except

(a)   Infancy, to the extent that it is a
defense to a simple contract; and

(b)    Such other incapacity, or duress, or
illegality of the transaction, as renders the obligation
of the party a nullity; and

(c)   Such misrepresentation as has induced the
party to sign the instrument with neither knowledge nor
reasonable opportunity to obtain knowledge of its