Holder in due course

A knowledgeable professor of finance would explain that when a person takes a bill, which is complete and regular on its face, they are considered a holder under certain conditions. These conditions are that they acquired the bill before it became overdue, without prior knowledge of it being dishonoured, and with good faith and for value. Additionally, they should have no knowledge of any title defects at the time of negotiation. This rule applies to all holders, except for the original payee, who is unable to be a holder in due course. Furthermore, the rights of a holder in due course are not affected by fraud committed by the acceptor or any other party.