payment in due course
- 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
- The bank later found out that the payment in due course they carried out was to a holder with invalid title.
- Because of lacking knowledge about the fraud, they made a payment in due course to the holder.
- Unaware of the fraud, they proceeded with the payment in due course.
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