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D is corrent. A holder in due course takes a negotiable instrument subject only to the real defenses of that instrument. The assertion of any personal defense against a holder in due course will be unsuccessful. Since the discharge of the maker of an instrument in bankruptcy proceedings is a real defense, this defense can be successfully asserted against a holder in due course, thereby destroying the holder’s right to collect on the instrument.
A is incorrect. Fraudulent misrepresentation is a personal defense which could not be successfully asserted against a holder in due course.
B is incorrect. The unauthorized completion of an incomplete instrument is a personal defense which could not be successfully asserted against a holder in due course.
C is incorrect. Breach of a contractual obligation is a personal defense which could not be successfully asserted against a holder in due course.