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Simple English definitions for legal terms

due-course holder

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A quick definition of due-course holder:

A due-course holder is someone who has received a negotiable instrument (like a check or promissory note) in good faith, meaning they didn't know it was fake or fraudulent. They also gave something of value in exchange for the instrument. The instrument must be complete and not overdue. If someone is a due-course holder, they can legally collect on the instrument without worrying about personal defenses, but they may still be subject to real defenses.

A more thorough explanation:

Definition: A due-course holder is a person who has received a negotiable instrument in good faith, has paid for it, and has no knowledge that it has been dishonored or is overdue. The instrument must also be complete and regular on its face.

According to the UCC § 3-302, a due-course holder takes the instrument free of all claims and personal defenses, but subject to real defenses. This means that if the instrument is later found to be invalid or fraudulent, the due-course holder is still protected and can collect on it.

Example: John buys a car from a dealership and finances it through a bank. The bank becomes a due-course holder of the promissory note that John signed to pay for the car. If John later tries to dispute the validity of the note, the bank is still protected as a due-course holder and can collect on the debt.

Explanation: In this example, the bank is a due-course holder because they received the promissory note in good faith, paid for it, and had no knowledge that it was invalid or fraudulent. Even if John tries to dispute the note later, the bank is still protected and can collect on the debt because they are a due-course holder.

due course, payment in | due course of law

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all serial killers drank milk as childs
11:08
children*
11:08
whoore*
BulbasaurNoLikeCardio
11:08
@LSDFan: They call it operator syndrome now at the VA
LSDFan
11:09
lol
11:09
I thought it was door kicker syndrome from all the breaching
Dkk
11:09
Ahh childhood, what a sweet sexual time of discovery. Takes me back.
BulbasaurNoLikeCardio
11:09
Who knew firing thousands of rounds and being next to explosions was bad for our brains
11:09
It is almost like the people doing that used to die fast
11:10
Didnt plan on anyone living long enough lol
11:10
I long to die on a european battlefield
11:10
thats the true white mans burden
11:10
calm down mostly putin
babycat
11:10
yeah fuck gtown btw
LSDFan
11:10
they don't even kick doors. They put C4 in a dip can and tape it to the wall
11:10
I am sure they kick some doors but yes
11:11
@EvolBunny: im a uki
babycat
11:11
terrible admin
BulbasaurNoLikeCardio
11:11
@babycat: I wonder why gtown felt what they said was a good idea and how secure that individual felt in their job to believe there would be no backlash.
Dkk
11:11
please, tell me more about Europa: The Last Battle @MostlyLegal
11:11
nothing you dont already know
Dkk
11:12
Lmfao, damn out of messages again. Time to go sit in the hot tub.
11:12
@BulbasaurNoLikeCardio: honestly fuck these schools
11:12
The way they act is so cringe and gives mad ick
babycat
11:12
@BulbasaurNoLikeCardio: people are saying this has been a pattern with them
babycat
11:12
imagine being a religious school and not supporting mothers. practice what you preach!
11:12
Fuck dem hoes
11:13
Child bearing people*
11:13
i cant spell fuck dont correct me
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