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Simple English definitions for legal terms

due-course holder

Read a random definition: motion for j.n.o.v

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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my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
Yeah, it’s tough. I’m distracting myself by playing good video games after work :)
im distracting myself by schizo-scrolling r/lawschoolamissions and every conceivable data point on this godforsaken website
it is not working
Haaa I naturally want to do that too. I’m trying to stop. They need a surgeon general’s warning on this site for perspective law students
i spend more time on here then anything else trying to rationalize that the waves from last year will match waves for this year (they won't) and that the stats of people with the same stats are indicative of my own (they aren't)
There aren't many people in my stat range so I pretty much know every result in my range after being on here for a few years
9:28
congrats on the 172 bruce
go dawgs fr
9:29
roll tide
do we foresee a fordham election day wave today (i'm delusional)
WorthlessAttractiveZombie
9:31
I think so, Jack
9:31
some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
9:32
[kevin oleary]
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
worthless i trust you implicitly you know what it will happen now.
WorthlessAttractiveZombie
9:34
I mean if Fordham doesn't release today I will purposefully get on a train, go to new york, and then take the stinkiest shit inside the admission office's toilet (potentially clogging it and forcing them to get a plumber)
IS IT ONLY ON MY END WHY DID THAT SEND TEN MILLION TIMES
HELLO
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