Despite this corn purchased the note for 4000 under the

Question

Hall forged Crandall's signature on a promissory note dated April 1, Year 3. The note was for $5,000 and was payable to bearer on demand. Hall offered to sell the note to Corn for $4,000. Corn knew that Crandall had been out of the country since Year 1. In addition, Corn knew that Crandall's name and signature were misspelled, and that Hall had a questionable reputation. Despite this, Corn purchased the note for $4,000. Under the Negotiable Instruments Article of the UCC, what are Corn's rights under the note?

1. Corn is a holder in due course and may enforce the note against Hall and Crandall.
2. Corn is a holder in due course under the shelter rule and may enforce the note only against Hall.
3. Corn is a holder and may enforce the note against Hall.
4. Corn is a holder and may enforce the note against Crandall.