An individual who acquires a negotiable instrument in good faith.
One who has acquired possession of a negotiable instrument through proper negotiation for value, in good faith, and without notice of any defenses to it.
A term that describes a person or other legal entity (such as a financial institution) that "holds" or owns a negotiable instrument (usually a check or promissory note) but is not the original payee of the instrument. As such, the "holder' may not be subject to some claims or defenses that might be raised against the original payee by the maker of the instrument (such as the borrower).
a holder who has taken the instrument under the following conditions
a holder who takes an instrument for value, in good faith, and without notice that it is overdue or has been dishonored or of any defense against or claim to it on the part of any person
A person who takes a negotiable instrument under the following conditions: that it is complete and regular on its face; that he becomes the holder of it before it was overdue and without notice that it had been previously dishonored, if such was the fact; that he took it in good faith and for value; that at the time it was negotiated to him he had no notice of any infirmity in the instrument or defect in the title of the person negotiating it.
One who takes a negotiable instrument before maturity, for value, and without knowledge of any defect therein.
A bona fide holder who takes a negotiable instrument (i.e. check, promissory note, etc.) for value, in good faith, without notice of it being overdue or of possible defenses.
This legal document holds that a person or entity that obtains a note without notice of any borrower defenses to its enforcement may enforce payment of that note in a court despite any borrower defense or other reason for not paying.
The holder of a negotiable instrument (check or note) purchased for value when the instrument appears complete and regular on its face; is taken before its due date and without notice of previous dishonor; and the holder has no notice of any defects in title of the transferor.
One who has taken a negotiable note, check, or bill of exchange in due course before it was past due; in good faith; without knowledge that it has been previously dishonored and without notice of any defect at the time it was negotiated to him or her; for value. Someone who acquires a negotiable instrument in good faith and without any actual or constructive notice of defect. The acquisition must occur before the note's maturity. Such a holder takes the note free from any personal defenses (such as failure of consideration, fraud in the inducement) that may be available against the maker Back to the Top
In commercial law, a holder of an instrument who took it for value, in good faith and without notice of any claim or defense against it, U.C.C.Sec. 3-302(1), and who can enforce the instrument free from all claims and personal defenses.
A person who takes a negotiable instrument, such as a note or check in good faith for value before it is past due and without notice of any defects when it was negotiated. Certain defenses that the maker could have claimed against the original payee, such as payment in full or in part, or certain types of fraud cannot be claimed against a holder in due course.
A person who, in the course of commerce, takes a negotiable instrument good on its face for value prior to due date, without notice of any defense of the maker.
An innocent party who purchased a note, check or bill of exchange before it was overdue, in good faith and for value, without knowledge that it has been previously dishonored and without knowledge of any defect at the time it was purchased.
Legal ruling providing protection to homebuyers of defective homes ought from a seller who then sold the contract to a third party. Alternately, one who acquires a bearer instrument in good faith and is eligible to keep it even though it may have been stolen.
As defined in the Uniform Commercial Code, a party who accepts an instrument in good faith and for value, without notice that it has been dishonored, it is overdue, or that there is any claim against it.
A holder of a check or note who takes, for value and in good faith, the note before it is overdue or the check without knowledge that it has bounced, if, in fact it has.
Holder in due course, or (HDC) is a term used in law to refer to an innocent party who purchases a negotiable instrument for value without any apparent defect in the instrument nor any notice of dishonor.(Black's Law Dictionary 2nd Pocket ed. 2001 pg. 322). An HDC must purchase for value, meaning that he or she must pay for the property rather than simply being the beneficiary of a gift, although the value does not have to be 100% of the market value. Depending on the laws of the relevant jurisdiction, when a party sells a negotiable instrument with a non-apparent defect to an HDC, such as by selling them an instrument upon which another has a claim, that HDC takes good title to the property despite the competing claims of the other party unless the other party has a real defense, such as lack of capacity or fraud in the factum.