Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 3-302 — Holder in Due Course
N.Y. U.C.C. Law § 3-302
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 3--302. Holder in Due Course.
Citator
N.Y. U.C.C. Law § 3-302 — Holder in Due Course is in force in the current edition of the Code, and nothing recorded condemns it.
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.