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Can you summarize IACO 554.3302?
UNIFORM COMMERCIAL CODE > Holder in due course.
Short Summary
This legal document, governed by the Iowa Code, specifically the Uniform Commercial Code, defines the concept of a ‘holder in due course’. A holder in due course refers to a person who holds an instrument, such as a negotiable instrument, without any apparent evidence of forgery, alteration, or irregularity that questions its authenticity. The holder must have taken the instrument for value, in good faith, and without notice of any issues related to the instrument, such as being overdue, dishonored, containing unauthorized signatures, or altered. The document also clarifies that notice of discharge of a party does not constitute notice of a defense, and public filing or recording of a document does not automatically constitute notice of a defense or claim to the instrument. The document further explains the limitations on acquiring the rights of a holder in due course through legal processes, bulk transactions, or as a successor in interest. It also addresses the rights of a holder in due course when the promise of performance has been partially performed or when there is a security interest in the instrument. The document emphasizes the importance of effective notice and acknowledges that certain transactions may have specific limitations on status as a holder in due course. Overall, this document provides a comprehensive definition and framework for determining the rights and responsibilities of a holder in due course.
Whom does it apply to?
Holders of instruments
What does it govern?
Holder in due course
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa