holder in due course

noun

  • Banking and Finance

Definitions of holder in due course

  • a person who obtains possession of a negotiable instrument (=promissory note, check, bill of exchange, etc) by paying for it in good faith (=done with good intentions, without knowledge or suspicion that it might be no good)

    The court found that she did not act in good faith and therefore cannot be a holder in due course.

This is a limited preview — please sign in or subscribe to learn everything we know about the term “holder in due course”.

Abbreviations of holder in due course

Phrase Bank for holder in due course