Learn about endorsement and its effects on negotiable instruments like cheques, bills of exchange, and promissory notes. Understand types, legal implications, and banking impact.
Tag: Holder in Due Course
Holder in Due Course: Meaning, Rights, and Importance in Negotiable Instruments Law
Holder in Due Course (HDC) is a person who acquires a negotiable instrument in good faith, for value, and before its maturity, thereby enjoying special rights and protectionsβsuch as priority in claims against previous defects or defenses. Under the Negotiable Instruments Act, 1881 (Section 9) of Bangladesh, this post explains the definition, conditions, rights/privileges, and examples of HDC in a clear and concise way.