payment in due course

Definition of "payment in due course"
  1. The act of paying money to the holder of a promissory note or other negotiable instrument, not knowing that it was obtained through dishonest means or that the holder doesn't legally own it
How to use "payment in due course" in a sentence
  1. The bank later found out that the payment in due course they carried out was to a holder with invalid title.
  2. Because of lacking knowledge about the fraud, they made a payment in due course to the holder.
  3. Unaware of the fraud, they proceeded with the payment in due course.

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