Holder in Due Course
/ˈhoʊldər ɪn ˈdu kɔrs/
Definitions
- (n.) A person who acquires a negotiable instrument in good faith, for value, and without notice of defects or claims against it, thus possessing certain protections under the law.
The holder in due course can enforce the instrument free from many defenses available against the original payee.
Forms
- holders in due course
Related terms
See also
Commentary
The status of holder in due course grants special rights to enforce payment, shielding the holder from many defenses; careful drafting should ensure clarity regarding notice and value to establish this status.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.