A holder in due course of a negotiable instrument always has the same rights as the individual that transferred the negotiable instrument to the holder.

Holder in Due Course

A legal term for someone who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original payee.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time, with the payee able to transfer it to another holder.

Transferred

Moved or shifted from one place, person, or entity to another.