Facts: Splitorff wrote check (from Braden Corp) to Polymer Corp. Polymer Corp presented check for deposit at Citizens bank on same day. Citizens gave Polymer provisional credit for amount of check. Polymer immediately used funds to pay checks that Polymer had previously written. Citizens went to NBD (bank of Braden) to get money and NBD didn’t pay because of insufficient funds in Braden’s account. At a later date, Braden Corp. had sufficient funds, verified by Splittorff at Citizens bank. Before Citizen could demand money from NBD, there was a stop order placed on the check. Citizen filed suit against Braden and Splittorff for $5,000 in damages for the check, $15,000 in treble damages, and $2,400 in collection and court costs.
Issue: Whether Citizens was a holder in due course of the check. (give value?)
Rationale: Citizens gave value for the check by issuing provisional credit to Polymer for the check, thus becoming holder in due course.
Conclusion: Citizens is holder in due course and it did give value for the check.
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