Cecilia made a check out to Gideon for $15. Gideon fraudulently changed the check to read $150, and cashed it at Corner Bank. Is Cecilia discharged from liability on the check?
A. Yes, Cecilia owes nothing on the check because alteration of a check is a real defense and real defenses are good even against holders in due course.
B. No, Cecilia pays $150 because of the impostor rule.
C. No, Cecilia pays $150 because she is not an indorser or accommodation party.
D. Yes, Cecilia owes nothing unless Corner Bank is a holder in due course, in which case she owes the original $15.
Answer: D
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