When can a holder in due course NOT enforce a note?

A holder in due course possesses certain protections that allow them to enforce a note free from many defenses that could be raised by previous parties. However, the defense of forgery is significant because it challenges the authenticity of the signature on the note. If the maker of the note contends that their signature is forged, this is a personal defense that can be invoked against the holder in due course. Since the validity of the instrument itself is called into question, the holder cannot enforce the note despite their status as a holder in due course.

In contrast, certain other issues, such as a note being missing or not properly stamped, generally relate to procedural matters that do not affect the fundamental validity of the note's terms or the obligation to pay. Similarly, an incorrect date does not alter the enforceability of the note—it may complicate matters but does not provide a valid defense against enforcement. Thus, the defense of forgery is critical and serves as a valid reason for why a holder in due course cannot enforce the note.