BANKING AFFAIRS

Detailed explanation-1: -8. “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-2: -A non-cash form of money such as a cheque, bill of exchange, promissory note, traveller’s cheque, bearer bond, money order or postal order. BNIs often include the instruction ‘pay to the bearer’. The bearer is the person in physical possession of the BNI.

Detailed explanation-3: -Holder is a term used to any person that has in their custody a promissory note, bill of exchange or cheque. It should be entitled in his own name. Holder means a person entitled in his own name to the possession of a negotiable instrument and to receive the amount due on it.

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.