Identify the defenses that can be used against a holder in due course and those defenses that cannot be used against a holder in due course.

Real defenses are those that can be used to avoid payment to all holders, including holders in due course. Real defenses include:
(a) infancy, to the extent that it is a defense to a simple contract;
(b) any other incapacity, duress, or illegality of the transaction that renders the obligation void;
(c) fraud in the execution;
(d) discharge in insolvency proceedings;
(e) any other discharge of which the holder has notice when he takes the instrument; (f) unauthorized signature; and (g) fraudulent alteration. Personal defenses are available against holders other than holders in due course. Personal defenses include:
(a) lack of consideration;
(b) failure of consideration;
(c) breach of contract;
(d) fraud in the inducement;
(e) illegality that does not render a transaction void; (f) duress, undue influence, mistake, misrepresentation, or incapacity that does not render the transaction void; (g) setoff or counterclaim; (h) discharge of which the holder in due course does not have notice; (i) nondelivery of an instrument; (j) unauthorized completion of an incomplete instrument; (k) payment without obtaining surrender of the instrument; (l) theft of a bearer instrument or of an instrument payable to him; and (m) lack of authority of a corporate officer, agent, or partner as to the particular instrument, where such officer, agent, or partner had general authority to issue negotiable paper for his principal or firm.