holder in due course
Definition
Legal term for an original or any subsequent holder of a negotiable instrument (check, draft, note, etc.) who has accepted it in good-faith and has exchanged something valuable for it. For example, anyone who accepts a third-party check is a holder in due course. He or she has certain legal rights, and is presumed to be unaware that (if such were the case) the instrument was at any time overdue, dishonored when presented for payment, had any claims against it, or the party required to pay it has valid reason for not doing so. Also called protected holder.
holder in due course is in the Banking, Commerce & Finance, Corporate, Commercial, & General Law and International Trade & Relations subjects.
holder in due course appears in the definitions of the following terms: endorsee, silent confirmation, bona fide holder for value, negotiability, third party check, protected holder and negligence rule
This content can be found on the following page:
http://www.businessdictionary.com/definition/holder-in-due-course.html
email to a friend
print this definition
cite this definition
link to this page