diff --git a/src/devices/machine/upd765.cpp b/src/devices/machine/upd765.cpp
index 6c624134f4c..db8e1653191 100644
--- a/src/devices/machine/upd765.cpp
+++ b/src/devices/machine/upd765.cpp
@@ -1862,12 +1862,6 @@ void upd765_family_device::read_data_continue(floppy_info &fi)
 
 		case SCAN_ID:
 			LOGSTATE("SCAN_ID\n");
-			if(cur_live.crc) {
-				fi.st0 |= ST0_FAIL;
-				st1 |= ST1_DE|ST1_ND;
-				fi.sub_state = COMMAND_DONE;
-				break;
-			}
 			// MZ: This st1 handling ensures that both HX5102 floppy and the
 			// Speedlock protection scheme are properly working.
 			// a) HX5102 requires that the ND flag not be set when no address
@@ -1889,6 +1883,13 @@ void upd765_family_device::read_data_continue(floppy_info &fi)
 				live_start(fi, SEARCH_ADDRESS_MARK_HEADER);
 				return;
 			}
+			if(cur_live.crc) {
+				fi.st0 |= ST0_FAIL;
+				st1 |= ST1_DE;
+				st1 &= ~ST1_ND;
+				fi.sub_state = COMMAND_DONE;
+				break;
+			}
 			st1 &= ~ST1_ND;
 			st2 &= ~ST2_WC;
 			LOGRW("reading sector %02x %02x %02x %02x\n",