{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.3A-302.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.3A-302.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.3A-302.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.3A-302.html"}],"law_id":57239,"edition_id":1,"section_id":57239,"structure_id":13055,"section_number":"8.3A-302","catch_line":"Holder in due course","history":"Code 1950, \u00a7\u00a7 6-404, 6-408; 1964, c. 219, \u00a7\u00a7 8.3-302, 8.3-304; 1992, c. 693.","full_text":"a\n\nSubject to subsection (c) and \u00a7 8.3A-106 (d), “holder in due course” means the holder of an instrument if:1\n\nthe instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and2\n\nthe holder took the instrument (i) for value, (ii) in good faith, (iii) without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in § 8.3A-306, and (vi) without notice that any party has a defense or claim in recoupment described in § 8.3A-305 (a).b\n\nNotice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (a), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.c\n\nExcept to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken (i) by legal process or by purchase in an execution, bankruptcy, or creditor’s sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or (iii) as the successor in interest to an estate or other organization.d\n\nIf, under § 8.3A-303 (a) (1), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.e\n\nIf (i) the person entitled to enforce an instrument has only a security interest in the instrument and (ii) the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.f\n\nTo be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.g\n\nThis section is subject to any law limiting status as a holder in due course in particular classes of transactions.","order_by":null,"text":{"0":{"id":209671,"text":"Subject to subsection (c) and \u00a7 8.3A-106 (d), “holder in due course” means the holder of an instrument if:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":209672,"text":"the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":209673,"text":"the holder took the instrument (i) for value, (ii) in good faith, (iii) without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in § 8.3A-306, and (vi) without notice that any party has a defense or claim in recoupment described in § 8.3A-305 (a).","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":209674,"text":"Notice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (a), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"c"},"4":{"id":209675,"text":"Except to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken (i) by legal process or by purchase in an execution, bankruptcy, or creditor’s sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or (iii) as the successor in interest to an estate or other organization.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"5":{"id":209676,"text":"If, under § 8.3A-303 (a) (1), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"6":{"id":209677,"text":"If (i) the person entitled to enforce an instrument has only a security interest in the instrument and (ii) the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"7":{"id":209678,"text":"To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e","next_prefix":"g"},"8":{"id":209679,"text":"This section is subject to any law limiting status as a holder in due course in particular classes of transactions.","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f"}},"ancestry":[{"id":13055,"edition_id":1,"name":"Enforcement of Instruments","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":13054,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282819,"object_type":"structure","relational_id":13055,"identifier":"3","token":"8.3A\/3","url":"\/8.3A\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13054,"edition_id":1,"name":"Commercial Code \u2014 Negotiable Instruments","identifier":"8.3A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282705,"object_type":"structure","relational_id":13054,"identifier":"8.3A","token":"8.3A","url":"\/8.3A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65014,"structure_id":13055,"section_number":"8.3A-301","catch_line":"Person entitled to enforce instrument","url":"\/8.3A-301\/","token":"8.3A\/3\/8.3A-301","metadata":false},{"id":57239,"structure_id":13055,"section_number":"8.3A-302","catch_line":"Holder in due course","url":"\/8.3A-302\/","token":"8.3A\/3\/8.3A-302","metadata":false},{"id":57109,"structure_id":13055,"section_number":"8.3A-303","catch_line":"Value and consideration","url":"\/8.3A-303\/","token":"8.3A\/3\/8.3A-303","metadata":false},{"id":54111,"structure_id":13055,"section_number":"8.3A-304","catch_line":"Overdue instrument","url":"\/8.3A-304\/","token":"8.3A\/3\/8.3A-304","metadata":false},{"id":65312,"structure_id":13055,"section_number":"8.3A-305","catch_line":"Defenses and claims in recoupment","url":"\/8.3A-305\/","token":"8.3A\/3\/8.3A-305","metadata":false},{"id":70356,"structure_id":13055,"section_number":"8.3A-306","catch_line":"Claims to an instrument","url":"\/8.3A-306\/","token":"8.3A\/3\/8.3A-306","metadata":false},{"id":57726,"structure_id":13055,"section_number":"8.3A-307","catch_line":"Notice of breach of fiduciary duty","url":"\/8.3A-307\/","token":"8.3A\/3\/8.3A-307","metadata":false},{"id":60258,"structure_id":13055,"section_number":"8.3A-308","catch_line":"Proof of signatures and status as holder in due course","url":"\/8.3A-308\/","token":"8.3A\/3\/8.3A-308","metadata":false},{"id":57632,"structure_id":13055,"section_number":"8.3A-309","catch_line":"Enforcement of lost, destroyed, or stolen instrument","url":"\/8.3A-309\/","token":"8.3A\/3\/8.3A-309","metadata":false},{"id":82224,"structure_id":13055,"section_number":"8.3A-310","catch_line":"Effect of instrument on obligation for which taken","url":"\/8.3A-310\/","token":"8.3A\/3\/8.3A-310","metadata":false},{"id":83612,"structure_id":13055,"section_number":"8.3A-311","catch_line":"Accord and satisfaction by use of instrument","url":"\/8.3A-311\/","token":"8.3A\/3\/8.3A-311","metadata":false},{"id":82560,"structure_id":13055,"section_number":"8.3A-312","catch_line":"Lost, destroyed, or stolen cashier's check, teller's check, or certified check","url":"\/8.3A-312\/","token":"8.3A\/3\/8.3A-312","metadata":false}],"previous_section":{"id":65014,"structure_id":13055,"section_number":"8.3A-301","catch_line":"Person entitled to enforce instrument","url":"\/8.3A-301\/","token":"8.3A\/3\/8.3A-301","metadata":false},"next_section":{"id":57109,"structure_id":13055,"section_number":"8.3A-303","catch_line":"Value and consideration","url":"\/8.3A-303\/","token":"8.3A\/3\/8.3A-303","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.3A-302\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 1992, chapter 693.<\/p>","references":[{"id":71683,"section_number":"59.1-494","catch_line":"Transferable records","order_by":null,"url":"\/59.1-494\/"},{"id":77332,"section_number":"8.3A-103","catch_line":"Definitions","order_by":null,"url":"\/8.3A-103\/"},{"id":73125,"section_number":"8.4-104","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.4-104\/"},{"id":85489,"section_number":"8.4-205.1","catch_line":"Depositary bank holder of unendorsed item","order_by":null,"url":"\/8.4-205.1\/"},{"id":69286,"section_number":"8.4-209","catch_line":"When bank gives value for purposes of holder in due course","order_by":null,"url":"\/8.4-209\/"},{"id":58431,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.9A-102\/"}],"refers_to":[{"id":54896,"section_number":"8.3A-106","catch_line":"Unconditional promise or order","order_by":null,"url":"\/8.3A-106\/"},{"id":57109,"section_number":"8.3A-303","catch_line":"Value and consideration","order_by":null,"url":"\/8.3A-303\/"},{"id":65312,"section_number":"8.3A-305","catch_line":"Defenses and claims in recoupment","order_by":null,"url":"\/8.3A-305\/"},{"id":70356,"section_number":"8.3A-306","catch_line":"Claims to an instrument","order_by":null,"url":"\/8.3A-306\/"}],"permalink":{"id":282825,"object_type":"law","relational_id":57239,"identifier":"8.3A-302","token":"8.3A\/3\/8.3A-302","url":"\/8.3A-302\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.3A-302\/","token":"8.3A\/3\/8.3A-302","dublin_core":{"Title":"Holder in due course","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.3A-302","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Subject to subsection (c) and \u00a7 8.3A-106<\/a> (d), “holder in due course<\/span>” means the holder of an instrument if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the instrument when issued or negotiated to the holder does not bear such apparent evidence<\/span> of forgery<\/span> or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the holder took the instrument (i) for value, (ii) in good faith, (iii) without notice that the instrument is overdue or has been dishonored or that there is an uncured default<\/span> with respect to payment of another instrument issued as part of the same series, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in § 8.3A-306<\/a>, and (vi) without notice that any party<\/span> has a defense or claim in recoupment described in § 8.3A-305<\/a> (a). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Notice of discharge of a party<\/span>, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (a), but discharge is effective against a person who became a holder in due course<\/span> with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Except to the extent a transferor or predecessor in interest has rights as a holder in due course<\/span>, a person does not acquire rights of a holder in due course<\/span> of an instrument taken (i) by legal process or by purchase in an execution, bankruptcy<\/span>, or creditor<\/span>’s sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or (iii) as the successor in interest to an estate or other organization. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> If, under § 8.3A-303<\/a> (a) (1), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course<\/span> of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> If (i) the person entitled to enforce an instrument has only a security interest in the instrument and (ii) the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course<\/span> only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> This section is subject to any law<\/span> limiting status as a holder in due course<\/span> in particular classes of transactions. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHOLDER IN DUE COURSE (\u00a7 8.3A-302)\n\na. Subject to subsection (c) and \u00a7 8.3A-106 (d), “holder in due\ncourse” means the holder of an instrument if:\n\n 1. the instrument when issued or negotiated to the holder does not bear such\n apparent evidence of forgery or alteration or is not otherwise so irregular or\n incomplete as to call into question its authenticity; and\n\n 2. the holder took the instrument (i) for value, (ii) in good faith, (iii)\n without notice that the instrument is overdue or has been dishonored or that\n there is an uncured default with respect to payment of another instrument\n issued as part of the same series, (iv) without notice that the instrument\n contains an unauthorized signature or has been altered, (v) without notice of\n any claim to the instrument described in § 8.3A-306, and (vi) without\n notice that any party has a defense or claim in recoupment described in §\n 8.3A-305 (a).\n\nb. Notice of discharge of a party, other than discharge in an insolvency\nproceeding, is not notice of a defense under subsection (a), but discharge is\neffective against a person who became a holder in due course with notice of the\ndischarge. Public filing or recording of a document does not of itself\nconstitute notice of a defense, claim in recoupment, or claim to the instrument.\n\nc. Except to the extent a transferor or predecessor in interest has rights as a\nholder in due course, a person does not acquire rights of a holder in due course\nof an instrument taken (i) by legal process or by purchase in an execution,\nbankruptcy, or creditor’s sale or similar proceeding, (ii) by purchase as\npart of a bulk transaction not in ordinary course of business of the transferor,\nor (iii) as the successor in interest to an estate or other organization.\n\nd. If, under § 8.3A-303 (a) (1), the promise of performance that is the\nconsideration for an instrument has been partially performed, the holder may\nassert rights as a holder in due course of the instrument only to the fraction\nof the amount payable under the instrument equal to the value of the partial\nperformance divided by the value of the promised performance.\n\ne. If (i) the person entitled to enforce an instrument has only a security\ninterest in the instrument and (ii) the person obliged to pay the instrument has\na defense, claim in recoupment, or claim to the instrument that may be asserted\nagainst the person who granted the security interest, the person entitled to\nenforce the instrument may assert rights as a holder in due course only to an\namount payable under the instrument which, at the time of enforcement of the\ninstrument, does not exceed the amount of the unpaid obligation secured.\n\nf. To be effective, notice must be received at a time and in a manner that gives\na reasonable opportunity to act on it.\n\ng. This section is subject to any law limiting status as a holder in due course\nin particular classes of transactions.\n\nHISTORY: Code 1950, \u00a7\u00a7 6-404, 6-408; 1964, c. 219, \u00a7\u00a7 8.3-302, 8.3-304;\n1992, c. 693.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}