To be a holder in due course, Carol must have taken the instrument (1) for value: (2) in good faith; and (3) without notice that it is defective. It contains unauthorized sig-natures or alterations. Under UCC 3–303, a holder can take an instrument for value in payment of an antecedent claim. Here, the teller owed money to Carol on a gambling debt, so Carol claim although it may not have been a legal contract.

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