Money Mart Check Cashing Center, Inc. v. Epicycle Corp.

ROVIRA, Justice.

The Denver Superior Court held that Money Mart Check Cashing Center, Inc. (Money Mart), was not a holder in due course of a particular check. We granted certiorari and now reverse.

Money Mart cashes payroll and government checks for a fee. Epicycle Corporation is a Colorado employer that pays its employees by check. On February 16,1980, Epicycle issued a payroll check, payable to John Cronin, in the amount of $278.59. During the term of his employment, Cronin had borrowed money from Epicycle to be offset by subsequent wages.

The .sequence of events is not clear, but Cronin’s…