2010 New York Code
UCC - Uniform Commercial Code
Article 3 - COMMERCIAL PAPER
Part 3 - (3-301 - 3-307) RIGHTS OF A HOLDER
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.