holder in due course

Definition from Nolo’s Plain-English Law Dictionary

Someone who 1) holds a check or promissory note that was received in good faith and in exchange for value and 2) who has no suspicion that there is a claim against it by another party or that it was previously dishonored. Such a holder is entitled to payment by the maker of the check or note. (See also: bona fide purchaser)

Definition provided by Nolo’s Plain-English Law Dictionary.