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    Law5 - Sec 51-69

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    avegail_lucero
    A holder in due course is defined as someone who takes a negotiable instrument in good faith, for value, without notice of defects, and before the instrument becomes overdue. To be a holder in due course provides protection against certain claims and defenses that would be applicable to earlier holders in the chain of possession. The rights of a holder in due course include holding the instrument free from defects in title or defenses available between prior parties, and the ability to enforce full payment from all liable parties.

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    Law5 - Sec 51-69

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    avegail_lucero
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    A holder in due course is defined as someone who takes a negotiable instrument in good faith, for value, without notice of defects, and before the instrument becomes overdue. To be a holder in due course provides protection against certain claims and defenses that would be applicable to earlier holders in the chain of possession. The rights of a holder in due course include holding the instrument free from defects in title or defenses available between prior parties, and the ability to enforce full payment from all liable parties.

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    Law5 -Sec 51-69

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    A holder in due course is defined as someone who takes a negotiable instrument in good faith, for value, without notice of defects, and before the instrument becomes overdue. To be a holder in due course provides protection against certain claims and defenses that would be applicable to earlier holders in the chain of possession. The rights of a holder in due course include holding the instrument free from defects in title or defenses available between prior parties, and the ability to enforce full payment from all liable parties.

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    17 views1 page

    Law5 - Sec 51-69

    Uploaded by

    avegail_lucero
    A holder in due course is defined as someone who takes a negotiable instrument in good faith, for value, without notice of defects, and before the instrument becomes overdue. To be a holder in due course provides protection against certain claims and defenses that would be applicable to earlier holders in the chain of possession. The rights of a holder in due course include holding the instrument free from defects in title or defenses available between prior parties, and the ability to enforce full payment from all liable parties.

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    Sec. 51. Right of the holder to sue; payment.

    The holder of a negotiable instrument may sue thereon on his own name; and payment to him in due course discharges the instrument. Sec. 52. What constitutes a holder in due course. A holder in due course is a holder who has taken the instrument under the following conditions: (a) That is complete and regular upon its face; (b) The he became the holder of it before it was overdue, and without notice that it had been previously dishonored, if such was the fact; (c) That he took it in good faith and for value; (d) 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. Sec. 53. When person not deemed holder in due course. Where an instrument payable on demand is negotiated in an unreasonable length of time after its issue, the holder is not deemed holder in due course Sec. 54. Notice before full amount paid. When the transferee receives notice of any infirmity in the instrument or defect in the title of the person negotiating the same before he had paid the full amount agreed to be paid therefore, he will be deemed a holder in due course only to the extent of the amount thereto for paid by him. Sec. 55. When title defective. The title of a person who negotiates an instrument is defective within the meaning of this Act when he obtained the instrument, or any signature thereto, by fraud, duress, or force and fear, or

    other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud. Sec. 56. What constitutes notice of defect. To constitute notice of an infirmity in the instrument or defect in the title of the person negotiating it must have had actual knowledge actual knowledge in the infirmity or defect, or knowledge of such facts that his action in taking the instrument amounted to bad faith.

    Sec. 57. Rights of holder in due course. A holder in due course holds the instrument free from any defect of title of prior parties, and free from defenses available to prior parties among themselves, and may enforce payment of the instrument for the full amount thereof against all parties liable thereon. Sec. 58.

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