HOLDER IN DUE COURSE

holder in due course. A person who in good faith has given value for a negotiable instrument that is complete and regular on its face, is not overdue, and, to the possessor’s knowledge, has not been dishonored. • Under UCC § 3-302, a holder in due course takes the instrument free of all claims and personal defenses, but subject to real defenses. — Abbr. HDC; HIDC. — Also termed due-course holder. [Cases: Bills and Notes 327–384. C.J.S. Bills and Notes; Letters of Credit§§ 4, 24, 28, 30, 33, 65, 142–147, 149–153, 157, 159, 169–201.]