Bills of Exchange Act · 2023 Revised Edition · Part 2
29. Holder in due course
Official textFrom Attorney General's Chambers, unchanged
A holder in due course is a holder who has taken a bill, complete and regular on the face of it, under the following conditions —
holder
“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
that he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact;
Bills of Exchange
that he took the bill in good faith and for value and that at the time the bill was negotiated to him, he had no notice of any defect in the title of the person who negotiated it.
In particular, the title of a person who negotiates a bill is defective within the meaning of this Act when he obtained the bill, or the acceptance thereof, by fraud, duress, or force and fear, or other unlawful means, or for an illegal consideration, or when he negotiates it in breach of faith, or under such circumstances as amount to a fraud.
A holder (whether for value or not) who derives his title to a bill through a holder in due course, and who is not himself a party to any fraud or illegality affecting it, has all the rights of that holder in due course as regards the acceptor and all parties to the bill prior to that holder.
Terms defined in s 2
acceptance
Defined · s 2“acceptance” means an acceptance completed by delivery or notification;
holder
Defined · s 2“holder” means the payee or indorsee of a bill or note who is in possession of it, or the bearer thereof;
Part
Cheques on Banker
Part
Promissory Notes
Part