Post on 17-Jan-2018
description
CHAPTER 36: HOLDERS IN DUE COURSE AND DEFENSES
Learning Objectives:• Holder in Due Course
Significance Requirements
• Defenses Personal Real
• Exceptions to Holder in Due Course Status
Chapter 36 2
CHAPTER 36: HOLDERS IN DUE COURSE AND DEFENSES
1. Significance of the Designation2. Requirements:
a. Holder must receive valueb. Good faithc. Transferee does not have notice of
infirmities i. Types of Noticeii. Before Overdue
d. Holder from a HolderChapter 36 3
HOLDER IN DUE COURSE
1. Personal Defensesa. Significance: Holder in due
course is not subject to personal defenses
b. Examples
Chapter 36 4
DEFENSES
2. Real Defensesa. Significance: Holder in due
course is subject to real defenses
b. Examples
Chapter 36 5
DEFENSES
1. Rationale for Exceptions2. State Law3. Federal Law
a. FTC Rule Regarding Consumer Credit
b. Close Connectedness Doctrine
Chapter 36 6
EXCEPTIONS TO THE HOLDER-IN-DUE COURSE STATUS
CHAPTER 36: HOLDERS IN DUE COURSE AND DEFENSES