Acquiring Holder in Due Course Status | Negotiable Instruments

This lesson is the first of two covering the holder in due course doctrine (HDIC). The doctrine provides that a "holder" who takes an instrument (1) for value, (2) without notice of any claims, defenses, or facts that should have raised questions about the validity of the instrument, and (3) in good faith is free of personal defenses. Thus, when a HDIC demands payment from the maker of a note or the drawee of a check, the maker or the drawee cannot argue, for instance, that they were defrauded or that the other party in the underlying transaction breached. I hope you find the lesson helpful. Chapters 00:00:00 - Introduction 00:01:10 - (1) The Holder in Due Course Doctrine 00:01:21 - (a) Remembering assignment under contract law 00:04:30 - (b) Consider result under negotiable instrument law 00:13:31 - (c) Reasons for HIDC doctrine 00:17:03 - (d) Consumer credit sales and the HIDC doctrine 00:23:04 - (2) Becoming A Holder in Due Course 00:24:05 - (a) First requirement: Holder 00:29:23 - (b) Second requirement: Value 00:46:57 - (c) Third requirement: No notice 00:52:32 - (d) Fourth requirement: Good faith 00:55:47 -(3) The Shelter Rule 00:56:52 - (a) UCC § 3-203(b) explained and applied 01:07:03 - (b) Rationale for the shelter rule 01:09:46 - Conclusion/Outro