Section 3--306. Rights of One Not Holder in Due Course

Unless  he  has  the rights of a holder in due course any person takes
  the instrument subject to
    (a) all valid claims to it on the part of any person; and
    (b) all defenses of any party which would be available in an action on
  a simple contract; and
    (c) the defenses of want or failure of consideration,  non-performance
  of  any  condition  precedent,  non-delivery,  or delivery for a special
  purpose (Section 3--408); and
    (d) the defense that  he  or  a  person  through  whom  he  holds  the
  instrument acquired it by theft, or that payment or satisfaction to such
  holder   would   be   inconsistent  with  the  terms  of  a  restrictive
  indorsement. The claim of any third person  to  the  instrument  is  not
  otherwise  available as a defense to any party liable thereon unless the
  third person himself defends the action for such party.