The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-03-05
ARTICLE "
RIGHTS OF THE HOLDERS.

RIGHTS OF THE HOLDERS
Sec d. Right of Holder to Sue.
Payment The holder Of a negotiable
instrument may sue thereon in his
own name and payment TO him IN due
course discharges the instrument.
Sec. 80 What Constitutes q Holder
in Due Course. A holder in due
course is a holder who has taken the
instrument under the following con
ditions:
Cd That it is complete and regu-
lar upon its face;
CD That he became the holder of it
before it was overdue, and without no.
tice that II had been previously dis
honored. if such was The fact;
60 That he took ii IN good faith
and for value;
(4) That at the time II was nego-
dated to him be had no notice of any
iuhrmity in the instrument or defect
in the title OF the person negotiating
II.
Sec So. When Person not Deemed
Holder in Due Course Where an in
strument payable on demand is necoti-
ated an unreasonable length of time
after its issue The holder is not
deemed a holder in due course.
Sec -. Notice before Full Amount
Paid. Where the trausferee receives
notice OF any inhrmity in the instn-
ment or defect in the title of the per.
son negotiating the same before he
has paid the full amount agreed TO
be raid therefor he will be deemed
q holder in due course only TO the ex-
tent Of the amount heretofore paid
by him
Sec s.. when Title Defective. The
title Of person who negotiates an in
strument is defective within the mean
ing Of this act when ne obtained the
instrument. or any signature thereto.
by fraud duress or force and fear. or
other unlawful means. or for an H.
LEGAL consideration. or when he nego-
tiates it In breach Of faith. or under
such circumstances as amount 90 a
fraud.
Sec. Sc What Constitute. Notice of
I Defect. To constitute notice Of an in
/ trinity IN the instrument or defect in
the title Of the person negotiating tho
same. the person 10 whom 80 is neeo.
tiated must have had actual knovl-
edge OF the infrmity or defect. or
knowledge OF such facts that his ac-
ton in taking Che instrument amount
ed 10 bad faith
See. ~. Rights 81 Holder in Due
Course. 4 holder in due course holds
The instrument free from any defect
OF title Of prior parties. and free from
defenses available 10 prior parties
among themselves. and may enforce
payment of the instrument Tor the
tall amount thereof against all parties
liable thereon.
Sec. 81. When Subject 20 Original
| Defenses. In the hands of any holder
other than a holder in due course, a
negotiable instrumen, is subject 10
the same defenses as II Il were non.
negotiable But a holder who derives
HIS title through holder iu due
course. and who Is not himself a party
10 any fraud OF illeralitv affecting the
instrument. has all he rights of such
I former holder In respect Of all PARTIES
nrior 70 the latter
Sec. 80 Who Deemed Holder in
Due Course Livery holder is deemed
prima facie % De n holder in duc
/ course. but when it is shown that the
I title of any person who has negotiated
! tie instrument was defective. the orr
den IS on The holder 10 prove that ho
/ OF some person under whom be claims
+ acquired Che title as holder in due
course. But the last mentioned rule
+ does not apply in favor of party who
/ became bound on the instrument prior
{ TO the acquisition Of such defective
fifie