BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In simple terms, a Holder in Due Course is anyone who accepts a check for payment. On the face of the check there cannot be any evidence of fraud, nor can the person accepting the check have knowledge of any underlying fraud related to the check.

Detailed explanation-2: -An example of a holder in due course would be an entity such as Xxxxxx Xxx purchasing a note from a lender as an investment at a fair price when there is no indication of irregularity in the note. Instrument-A written legal document that establishes the different rights and duties of the parties involved.

Detailed explanation-3: -(3) A holder does not become holder in due course of an instrument: (a) by purchase of it at judicial sale or by taking it under legal process; or (b) by acquiring it in taking over an estate; or (c) by purchasing it as part of a bulk transaction not in regular-course of business of the transferor.

Detailed explanation-4: -Meaning. A holder is a person who legally obtains the negotiable instrument, with his name entitled on it, to receive the payment from the parties liable. A holder in due course (HDC) is a person who acquires the negotiable instrument bonafide for some consideration, whose payment is still due.