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endorse
(redirected from Holder in due course)

   Also found in: Legal, Acronyms, Wikipedia 0.06 sec.
Endorse
Transferring asset ownership by signing the back of the asset's certificate.

endorse
To sign a negotiable instrument in order to transfer it to another party. For example, investors holding securities must endorse the certificates before delivery to the broker.


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In contrast to its views about sales, the District Court held that usually an assignment of a claim will not insulate the transferee from adverse consequences caused by conduct of the transferor or a prior holder (unless, for example, the assignee is a holder in due course of a negotiable promissory note).
It also contains a summary of the rights of parties involved in common scenarios and coverage of: types of instruments; the life of an instrument; applicable laws; UCC theories of liability; discharge; the Holder in Due Course doctrine; accomodation parties; liability of an instrument signed by an agent; warrant liability; preclusion; altered instruments; and, procedural issues.
Any holder in due course will take an instrument free from all competing claims to it and, with certain exceptions, all defenses of any party to the instrument with whom the holder has not dealt.
 
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