This is a Business question?

Tabler was the payee on a negotiable note for $5,000 executed by Molitor. Tabler indorsed the note to Diaz in payment of $4,900. Diaz gave the note to her niece, Sally, as a birthday gift. When the note came due, the niece sought $5,000 from Molitor. Molitor said that since Sally had not paid value for the note, she was not a holder in due course and Molitor could raise a limited defense he had against Tabler against Sally.

Can Molitor raise a limited defense against Sally? Why or why not? If not, what if any defense can he raise against Sally?

positively