The UCC protects the HDC because, HDC as a third party is less likely to be responsible for most fraudulent instrument. The UCC can sometimes fail to protect “the loser party” involved with fraud because of Good Faith Status. For example in one of the cases from unit 5, Negotiable Instruments. A bank was contacted by an imposter who claimed to be Ronald E. Wilder, but was later found he wasn’t. The imposter who claimed to be Ronald E. Wilder obtained an 18,000 dollar loan from the bank and was given a check for the 18,000 dollar. The imposter then took the loan check to a check-cashing business, which cashed the loan check. Later the real Ronald E. Wilder called the bank regarding the fraudulent activity but by the time he notified the bank
