Holder in due course意思
"Holder in due course" is a term used in the context of negotiable instruments, such as checks, promissory notes, and drafts, under the Uniform Commercial Code (UCC) in the United States. It refers to a person who possesses a negotiable instrument in good faith, for value, and without notice of any defects or claims against the instrument.
To be a holder in due course, the person must meet the following criteria:
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Good Faith: The holder must take the instrument in good faith, meaning they believe it to be genuine and that the transaction is legitimate.
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Value: The holder must give value for the instrument. This can mean cash, a promise to pay something of value, or taking the instrument in exchange for a binding obligation.
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No Notice: The holder must not have notice of any defects or claims against the instrument, such as knowledge that it is overdue, has been dishonored, or is subject to a claim of forgery.
If a person meets these criteria, they are considered a holder in due course, and they take the instrument free of any personal, moral, or legal defenses that the maker or drawer of the instrument might have against prior parties. This means that the holder in due course can demand payment on the instrument without being subject to certain defenses that might otherwise be available under the law.
For example, if a holder in due course receives a check that was originally issued in payment for a contract that was later found to be void, the holder in due course can still demand payment on the check, even though the original parties to the contract might be able to avoid their obligations under the contract.
The concept of a holder in due course is important in commercial law because it provides certainty and predictability in transactions involving negotiable instruments. It also encourages the free flow of commerce by allowing buyers and sellers to rely on the face value of negotiable instruments without having to investigate the underlying transactions or the parties involved.