A more thorough explanation:

Due course, payment in: A payment made to the holder of a negotiable instrument at or after its maturity date, by the payor in good faith and without knowledge of any defects in the holder's title. This is also known as payment in due course.

Example 1: John owes Jane $500 and writes her a check. Jane deposits the check into her bank account. When the check clears, the bank pays Jane the $500. This is an example of payment in due course because the bank paid Jane in good faith and without knowledge of any defects in her title to the check.

Example 2: Sarah buys a used car from Tom and pays him with a cashier's check. Tom deposits the check into his bank account. A few days later, the bank informs Tom that the check was fraudulent and takes the $10,000 out of his account. This is not an example of payment in due course because the bank did not pay Tom in good faith and with knowledge of a defect in Sarah's title to the check.

Payment in due course means that the payor (the person making the payment) pays the holder of a negotiable instrument (such as a check or promissory note) in good faith and without knowledge of any defects in the holder's title. This protects the payor from being held responsible if there are any issues with the instrument's ownership or validity. The examples illustrate this concept by showing how payment in due course protects the payor from being held responsible for any defects in the holder's title.