Section 3--305. Rights of a Holder in Due Course

To  the  extent  that  a holder is a holder in due course he takes the
  instrument free from
    (1) all claims to it on the part of any person; and
    (2) all defenses of any party to the instrument with whom  the  holder
  has not dealt except
         (a) infancy,  to  the  extent  that  it  is a defense to a simple
             contract; and
         (b) such other  incapacity,  or  duress,  or  illegality  of  the
             transaction,  as  renders  the  obligation  of  the  party  a
             nullity; and
         (c) such misrepresentation as has induced the party to  sign  the
             instrument  with neither knowledge nor reasonable opportunity
             to obtain knowledge of its character or its essential  terms;
             and
         (d) discharge in insolvency proceedings; and
         (e) any  other  discharge  of which the holder has notice when he
             takes the instrument.