{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-3-302","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-3-302","heading":"Holder in Due Course","body":"HOLDER IN DUE COURSE\n\n(a) Subject to subsection (c) of this section and subsection\n\n(d) of Section 3-106 of this title, \"holder in due course\" means the\n\nholder of an instrument if:\n\n(1) the instrument when issued or negotiated to the holder\n\ndoes not bear such apparent evidence of forgery or\n\nalteration or is not otherwise so irregular or\n\nincomplete as to call into question its authenticity;\n\nand\n\n(2) the holder took the instrument (i) for value, (ii) in\n\ngood faith, (iii) without notice that the instrument\n\nis overdue or has been dishonored or that there is an\n\nuncured default with respect to payment of another\n\ninstrument issued as part of the same series, (iv)\n\nwithout notice that the instrument contains an\n\nunauthorized signature or has been altered, (v)\n\nwithout notice of any claim to the instrument\n\ndescribed in Section 3-306 of this title, and (vi)\n\nwithout notice that any party has a defense or claim\n\nin recoupment described in subsection (a) of Section\n\n3-305 of this title.\n\n(b) Notice of discharge of a party, other than discharge in an\n\ninsolvency proceeding, is not notice of a defense under subsection\n\n(a) of this section, but discharge is effective against a person who\n\nbecame a holder in due course with notice of the discharge. Public\n\nfiling or recording of a document does not of itself constitute\n\nnotice of a defense, claim in recoupment, or claim to the\n\ninstrument.\n\n(c) Except to the extent a transferor or predecessor in\n\ninterest has rights as a holder in due course, a person does not\n\nacquire rights of a holder in due course of an instrument taken (i)\n\nby legal process or by purchase in an execution, bankruptcy, or\n\ncreditor's sale or similar proceeding, (ii) by purchase as part of a\n\nbulk transaction not in ordinary course of business of the\n\ntransferor, or (iii) as the successor in interest to an estate or\n\nother organization.\n\n(d) If, under paragraph (1) of subsection (a) of Section 3-303\n\nof this title, the promise of performance that is the consideration\n\nfor an instrument has been partially performed, the holder may\n\nassert rights as a holder in due course of the instrument only to\n\nthe fraction of the amount payable under the instrument equal to the\n\nvalue of the partial performance divided by the value of the\n\npromised performance.\n\n(e) If (i) the person entitled to enforce an instrument has\n\nonly a security interest in the instrument and (ii) the person\n\nobliged to pay the instrument has a defense, claim in recoupment, or\n\nclaim to the instrument that may be asserted against the person who\n\ngranted the security interest, the person entitled to enforce the\n\ninstrument may assert rights as a holder in due course only to an\n\namount payable under the instrument which, at the time of\n\nenforcement of the instrument, does not exceed the amount of the\n\nunpaid obligation secured.\n\n(f) To be effective, notice must be received at a time and in a\n\nmanner that gives a reasonable opportunity to act on it.\n\n(g) This section is subject to any law limiting status as a\n\nholder in due course in particular classes of transactions.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"24d94231979f4fa6c1546fbe4612ed5194bd109a5cb12a0f0ff4155d4a4ca0de","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-3-301","next":"us-ok/okla.-stat.-tit.-12a-12a-3-303"},"notice":"GroundRules: Original legal text. Not legal advice."}