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

Section 3--302. Holder in Due Course.


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


in good faith; and


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.


A payee may be a holder in due course.


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


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


by acquiring it in taking over an estate; or


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


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 Jul. 20, 2024).

Jul. 20, 2024

Last modified:
Sep. 22, 2014

§ 3-302’s source at nysenate​.gov

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