Holder in Due Course

An individual who takes a COMMERCIAL PAPER for value, in GOOD FAITH, with the belief that it is valid, with no knowledge of any defects.

The UNIFORM COMMERCIAL CODE (UCC) defines a holder in due course as one who takes an instrument for value in good faith absent any notice that it is overdue, has been dishonored, or is subject to any defense against it or claim to it by any other person.