Texas Business & Commerce Code

§ 3.302 — HOLDER IN DUE COURSE

BC § 3.302Title 1. UNIFORM COMMERCIAL CODE · Ch. 3. NEGOTIABLE INSTRUMENTS · Art. C. ENFORCEMENT OF INSTRUMENTS

Statute text

(a)Subject to Subsection (c) and Section 3.106(d), "holder in due course" means the holder of an instrument if:

(1)the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and

(2)the holder took the instrument:

(A)for value;

(B)in good faith;

(C)without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series;

…

Legislative history

Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.