Acquisition after dishonour limits a holder's rights to those of the transferor, with an accommodation exception for good faith purchasers. Acquisition after dishonour or after maturity limits a subsequent holder to the rights of the transferor; such acquirers take the instrument subject to the same defenses and objections that could be asserted against the transferor. However, a good faith purchaser for consideration who takes, after maturity, an accommodation promissory note or bill made without consideration to enable another to raise funds may recover the amount from any prior party.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Acquisition after dishonour limits a holder's rights to those of the transferor, with an accommodation exception for good faith purchasers.
Acquisition after dishonour or after maturity limits a subsequent holder to the rights of the transferor; such acquirers take the instrument subject to the same defenses and objections that could be asserted against the transferor. However, a good faith purchaser for consideration who takes, after maturity, an accommodation promissory note or bill made without consideration to enable another to raise funds may recover the amount from any prior party.
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