Holder in Due Course - Receive Instrument in Good Faith

The video tutorial discusses the concept of a holder in due course, emphasizing the importance of receiving an instrument in good faith. It explains that the holder must not have any intent or knowledge of deceptive practices. The court uses both subjective and objective tests to determine good faith, examining the holder's actual knowledge and whether a reasonable person would perceive any wrongdoing. The tutorial highlights scenarios where a reasonable person might detect fraud, such as when a negotiable instrument is transferred at a suspiciously low value.

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