A real defense is a justification for a maker or drawer not to honor a negotiable instrument even if it has been transferred to a holder in due course (or "HDC") because it makes the instrument “void” according to Uniform Commercial Code §3-305 comment 1, thus it can’t be "cut off" by the transfer to an HDC. Contrast this with personal defenses (such as failure of consideration), which cannot protect the maker against the claims by an HDC.
Read more about Real Defense: Ten Types of Real Defenses Depending Upon State Law
Famous quotes containing the words real and/or defense:
“The words themselves are clean, so are the things to which they apply. But the mind drags in a filthy association, calls up some repulsive emotion. Well, then, cleanse the mind, that is the real job. It is the mind which is the Augean stables, not language.”
—D.H. (David Herbert)
“There’s no telling what might have happened to our defense budget if Saddam Hussein hadn’t invaded Kuwait that August and set everyone gearing up for World War II½. Can we count on Saddam Hussein to come along every year and resolve our defense-policy debates? Given the history of the Middle East, it’s possible.”
—P.J. (Patrick Jake)