N.Y. UCC Law § 3-302
This is the official text of N.Y. UCC Law § 3-302, part of New York’s UCC Law — part of the compiled statutory law of New York, published by the state as "UCC Law." Browse the sections below, each linked to its official government source.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
Holder in Due Course
Official statutory text
Section 3--302. Holder in Due Course.\n (1) A holder in due course is a holder who takes the instrument\n (a) for value; and\n (b) in good faith; and\n (c) without notice that it is overdue or has been dishonored or\n of any defense against or claim to it on the part of any\n person.\n (2) A payee may be a holder in due course.\n (3) A holder does not become a holder in due course of an instrument:\n (a) by purchase of it at judicial sale or by taking it under\n legal process; or\n (b) by acquiring it in taking over an estate; or\n (c) by purchasing it as part of a bulk transaction not in regular\n course of business of the transferor.\n (4) A purchaser of a limited interest can be a holder in due course\nonly to the extent of the interest purchased.\n
Status: in_force · Read it on the official government site
Need a lawyer in New York?
Find a New York lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.