BANKING AFFAIRS

Detailed explanation-1: -A holder in due course is any person who receives or holds a negotiable instrument such as a check or promissory note in good faith and in exchange for value; without any notice or suspicion that it is overdue or was previously dishonoured.

Detailed explanation-2: –”Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.

Detailed explanation-3: -“Holder”.-The “holder” of a promissory note, bill of exchange or cheque means any person entitled in his own name to the possession thereof and to receive or recover the amount due thereon from the parties thereto.

Detailed explanation-4: -118. Presumptions as to negotiable instruments. (a) of consideration; (b) as to date; (c) as to time of acceptance; (d) as to time of transfer; (e) as to order of indorsements; (f) as to stamp; (g) that holder is a holder in due course; 119.