Check-Cashing Companies As Holders In Due Course

LexisNexis (October 19, 2017, 12:59 PM EDT) -- The holder in due course rule, which dates back centuries, allows a bona fide purchaser of a negotiable instrument to take the instrument free of claims and defenses.  A common example is a check given for an underlying obligation such as the sale of goods.  The payee of the check deposits it and takes off with the funds before the item has a chance to clear.  When the drawer of the check discovers that the goods are defective, it immediately stops payment on the item.  The...
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