Holder in Due Course

Holder in Due Course in International Trade

Meaning of Holder in Due Course, according to the Dictionary of International Trade (Global Negotiator): An individual or legal entity (holder) who possesses a negotiable instrument, document of title, and who took possession for value, in good faith, and without notice of other individual's or legal entity's claim or defense against. A holder in due course is generally protected from the claims of third parties against the item transferred, and thus the only recourse of a third party is against the person that transferred the title, instrument or other item to the holder in due course.