bona fide holder
- An individual or entity who has legitimately acquired a negotiable instrument, such as a check or promissory note, as part of regular business transactions, offering fair value for it, and did so before its maturity date without knowing of any issues with the instrument's origination or ownership
- The company accepts checks with confidence because they know they can maintain the status of a bona fide holder.
- As a bona fide holder, the bank was able to enforce the contract despite the original parties' dispute.
- Despite the dispute over the promissory note, the third party who had acquired it innocently and had offered value for it was recognized as a bona fide holder.