There is a newer version of the New York Laws
2022
2021
2020
2019
2018
Other previous versions
View our newest version here

2017 New York Laws
UCC - Uniform Commercial Code
Article 3 - Commercial Paper
Part 3 - Rights of a Holder
3-302 - Holder in Due Course.

Universal Citation: NY UCC § 3-302 (2017)
Previous Next 
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.

Previous Next
Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.