holder in due course

holder in due course
holder in due course: the holder of a negotiable instrument that is complete and regular on its face and that is taken in good faith and for value without notice that it is overdue or has been dishonored or that there is any defense against it or claim to it by any party compare bona fide holder
◇ A holder in due course takes the negotiable instrument free of any claims to it and of most defenses of a party to it. Federal Trade Commission rules have abolished the status of holder in due course in consumer transactions.

Merriam-Webster’s Dictionary of Law. . 1996.

holder in due course
n.
A bona fide purchaser who acquires an instrument in good faith, for value, and without notice of any claim against the instrument.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


holder in due course
a person who has taken a bill of exchange in good faith and for value before it was overdue and without notice of previous dishonour or of any defect in the title of the person who negotiated or transferred the bill. A holder in due course can negotiate the bill further and stands to be recompensed if it is dishonoured by the drawer, acceptor or other endorsee: Bills of Exchange Act 1882. The original payee of a cheque is not a holder in due course: Re Jones Ltd v . Waring & Gillow [1926] AC 670; Williams v . Williams 1980 SLT (Sh. Ct) 25.

Collins dictionary of law. . 2001.


holder in due course
Someone who
1) holds a check or promissory note that was received in good faith and in exchange for value and
2) who has no suspicion that there is a claim against it by another party or that it was previously dishonored. Such a holder is entitled to payment by the maker of the check or note. (See also: bona fide purchaser)
Category: Personal Finance & Retirement

Nolo’s Plain-English Law Dictionary. . 2009.


holder in due course
n. Under the Uniform Commercial Code, one who has given value in exchange for the possession of a negotiable instrument and is unaware of any defects in title.

Webster's New World Law Dictionary. . 2000.


holder in due course
An individual who takes a commercial paper for value, in good faith, with the belief that it is valid, with no knowledge of any defects.

Dictionary from West's Encyclopedia of American Law. 2005.


holder in due course
An individual who takes a commercial paper for value, in good faith, with the belief that it is valid, with no knowledge of any defects.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

holder in due course
n.
   one holding a check or promissory note, received for value (he/she paid for it) in good faith and with no suspicion that it might be no good, claimed by another, overdue or previously dishonored (a bank had refused to pay since the account was overdrawn). Such a holder is entitled to payment by the maker of the check or note.
   See also: bona fide purchaser

Law dictionary. . 2013.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Holder in due course — 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.… …   Wikipedia

  • holder in due course — 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. No. 3 302(1), and who can enforce the instrument free from all claims and personal defenses. U.C.C. No …   Black's law dictionary

  • holder in due course — 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. No. 3 302(1), and who can enforce the instrument free from all claims and personal defenses. U.C.C. No …   Black's law dictionary

  • holder in due course — Broadly, a bona fide holder for value without notice. 11 Am J2d B & N § 397. A holder of a negotiable instrument or document of title who has taken the instrument under the following conditions: that it is complete and regular upon its face; that …   Ballentine's law dictionary

  • holder in due course — the holder of a negotiable instrument that is complete and regular on its face who takes it in good faith and for value before it is overdue and without notice of its dishonor or of any infirmity in it or of any defect in the title of the person… …   Useful english dictionary

  • holder in due course — Date: 1882 one other than the original recipient who holds a legally effective negotiable instrument (as a promissory note) and who has a right to collect from and no responsibility toward the issuer …   New Collegiate Dictionary

  • holder in due course — a person who has received a negotiable instrument in good faith and without notice that it is overdue, that there is any prior claim, or that there is a defect in the title of the person who negotiated it. [1890 95] * * * …   Universalium

  • holder in due course — person that holds a promissory note that was legally transferred to him …   English contemporary dictionary

  • holder in due course — /ˌhəυldə ɪn dju: kɔ:s/ noun a person who holds a negotiable instrument, such as a bill of exchange, in good faith, without knowing of any other claim against it …   Dictionary of banking and finance

  • due course — See holder in due course. Collins dictionary of law. W. J. Stewart. 2001 …   Law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”