N.Y. Uniform Commercial Code Law Section 3-302
Holder in Due Course

Section 3--302. Holder in Due Course.

(1)

A holder in due course is a holder who takes the instrument (a) for value; and

(b)

in good faith; and

(c)

without notice that it is overdue or has been dishonored or of any defense against or claim to it on the part of any person.

(2)

A payee may be a holder in due course.

(3)

A holder does not become a holder in due course of an instrument:

(a)

by purchase of it at judicial sale or by taking it under legal process; or

(b)

by acquiring it in taking over an estate; or

(c)

by purchasing it as part of a bulk transaction not in regular course of business of the transferor.

(4)

A purchaser of a limited interest can be a holder in due course only to the extent of the interest purchased.

Source: Section 3-302 — Holder in Due Course, https://www.­nysenate.­gov/legislation/laws/UCC/3-302 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

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Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 3-302’s source at nysenate​.gov

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