What You Need to Know About Holder of Due Course
Related Forms
Schedule B - Personal Property
Schedule C - Property Claimed as Exempt
Schedule D - Creditors Holding Secured Claims
Schedule E - Creditors Holding Unsecured Priority Claims
Schedule F - Creditors Holding Unsecured Nonpriority Claims
Schedule G - Executory Contracts and Unexpired Leases
Schedule I - Current Income of Individual Debtor(s)
Schedule J- Current Expenditures of Individual Debtor(s)
Summary of Schedules (Includes Statistical Summary of Certain Liabilities)
View AllA Holder in Due Course is a commercial law which facilitates a transfer of debt or another financial obligation that must be paid to parties that are connected to the original transaction. The Due Course Doctrine formally insulates the final buyer of the debt obligation from challenges by either party of the original agreement or transaction. Typically, this clause is enacted and performed when there is a non-performance issue by one of the parties involved in the original contract.
To clarify, if party X promised to pay a lump sum to party Y and Y then transferred that obligation of payment to Z, then Z would be classified as insulated or protected from any conflict which arises between the original members of the contractual agreement (parties X and Y.) As a result of the Due Course Statute, party X may then sue party Y for non-performance, but is still required to pay the original obligation to party Z.
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