Is the HIDC subject to the defense of fraud in the inducement?  Is there a UCC site on the issue?
     Thanks much.

I only have my outline in context of property, so No idea about UCC
<!--[if gte mso 9]> Normal 0 false false false MicrosoftInternetExplorer4 <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:204; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:none; mso-layout-grid-align:none; text-autospace:none; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} p {mso-margin-top-alt:auto; margin-right:0cm; margin-bottom:5.75pt; margin-left:0cm; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:612.0pt 792.0pt; margin:2.0cm 42.5pt 2.0cm 3.0cm; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> <!--[if gte mso 10]> MORTGAGEE INTEREST TRANSFER

2 WAYS FOR MORTGAGE COMPANY TO TRANSFER INTEREST
(1) Endorsing and delivering note to transferee
(2) <!--[if gte mso 9]> Normal 0 false false false MicrosoftInternetExplorer4 <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:204; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:none; mso-layout-grid-align:none; text-autospace:none; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} p {mso-margin-top-alt:auto; margin-right:0cm; margin-bottom:5.75pt; margin-left:0cm; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:612.0pt 792.0pt; margin:2.0cm 42.5pt 2.0cm 3.0cm; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> <!--[if gte mso 10]> Executing a separate document of assignment; If note is endorsed and delivered, transferee accepting note is eligible to become a HOLDER IN DUE COURSE [means new holder takes note free of any PERSONAL DEFENSES that could have been raised against original Mee such as lack of consideration, fraud in inducement, unconscionable conduct, waiver, estoppel, etc.) Holder can foreclosure

PERSONAL DEFENSES that could have been raised by property owner upon foreclosure such as lack of consideration, fraud in inducement, unconscionability, waiver, or estoppel;

 HOWEVER, holder in due course still subject to REAL DEFENSES (Remember “MAD FIFIx4 “) (1) Material Alteration defense (2) Duress (3) Fraud in factum [debtor thought he was signing credit application, not mortgage] (4) Incapacity (5) Illegality (6) Infancy (7) Insolvency)

 5 CRITERIA FOR BEING HOLDER IN DUE COURSE

1) Note must be negotiable, made payable to named mortgagee (ME); (2) Original note must be indorsed, signed by named ME; (3) The original note must be delivered to the transferee. A photocopy is unacceptable;* (4) The transferee must take the note in good faith without notice of any illegality; AND (5) The transferee must pay value for the note, meaning some amount that is more than nominal)

So if your bank sold out your note, you do not have to pay mortgage payments to new creditor if you demand to show original and they lost it. photocopy is not good enough.