holder in due course

holder in due course definition - business

holder in due course

The holder of a negotiable instrument such as a check or note that has been received in good faith for providing something of value. For example, a company that purchases loans from the original lender becomes the holder in due course. Likewise, a person or business becomes the holder in due course when they accept an endorsed check. See also payment in due course.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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