Economics
Banks as HDC
The greater protection afforded a holder in due course encourages financial transactions while protecting financial intermediaries, including banks when they acquire a security interest. This protection promotes the essential role banks play in our economy when they transfer large sums of money from savers to spenders, such as to provide entrepreneurs with loans to start or expand businesses. Banks also reduce the time and money individuals would spend looking for savings and investment opportunities if they could not rely on banks. Banks are much more likely to continue processing payments when they are not responsible for the risks of such transactions.

Source: Bradley R. Schiller, The Economy Today (New York: McGraw-Hill/Irwin, 2006), pp. 269, 673.