holder in due course

American  

noun

1. a person who has received a negotiable instrument in good faith and without notice that it is overdue, that there is any prior claim, or that there is a defect in the title of the person who negotiated it.

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Etymology

Origin of holder in due course

First recorded in 1890–95

Example Sentences

In reply, the FTC notes that though 40 states have passed laws defining in detail the liability of the holder in due course, few of them were really effective because merchants and lenders found loopholes.

From Time Magazine Archive

But where the note is in the hands of a holder in due course, a valid delivery thereof by all parties prior to him is conclusively presumed.

From Putnam's Handy Law Book for the Layman by Bolles, Albert Sidney