Holder In Due Course Legal Meaning and Definition

Here is a simplified definition of the legal term Holder In Due Course.

Holder In Due Course (n)

A holder in due course is an individual, often temporary, who possesses a negotiable instrument or property without necessarily being the true owner. This person has obtained the item or right legally and responsibly, often in the process of transferring it to the rightful owner. For example, if someone finds lost property and seeks to return it to its original owner, they would be considered a holder in due course.