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Can you summarize NHRS 382-A:3-302?
UNIFORM COMMERCIAL CODE > Holder in Due Course.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, defines the concept of a ‘holder in due course’. A holder in due course refers to a person who holds a negotiable instrument, such as a promissory note or a check, and meets certain criteria. To be considered a holder in due course, the instrument must not show any signs 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 with the instrument, such as being overdue, dishonored, containing unauthorized signatures, or altered. Additionally, the holder must not have notice of any claims or defenses against the instrument. The document also clarifies that certain actions, such as discharge of a party or public filing, do not constitute notice of a defense or claim against the instrument. It further specifies that certain transfers, such as those through legal process, bulk transactions, or as successors in interest, do not grant the rights of a holder in due course. The document also addresses partial performance of the instrument’s consideration and the rights of a holder with a security interest. Overall, this document provides the legal framework for determining the status of a holder in due course and the rights associated with it.
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
New Hampshire