The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 673
UNIFORM COMMERCIAL CODE: NEGOTIABLE INSTRUMENTS

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F.S. 673.3021

673.3021 Holder in due course.—

(1) Subject to subsection (3) and s. 673.1061(4), the term “holder in due course” means the holder of an instrument if:

(a) The instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and

(b) The holder took the instrument:

1. For value;

2. In good faith;

3. Without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series;

4. Without notice that the instrument contains an unauthorized signature or has been altered;

5. Without notice of any claim to the instrument described in s. 673.3061; and

6. Without notice that any party has a defense or claim in recoupment described in s. 673.3051(1).

(2) Notice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (1), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.

(3) Except to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken:

(a) By legal process or by purchase in an execution, bankruptcy, or creditor’s sale or similar proceeding;

(b) By purchase as part of a bulk transaction not in ordinary course of business of the transferor; or

(4) If, under s. 673.3031(1)(a), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.

(5) If the person entitled to enforce an instrument has only a security interest in the instrument and the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.

(6) To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.

(7) This section is subject to any law limiting status as a holder in due course in particular classes of transactions.

History.—s. 2, ch. 92-82.

F.S. 673.3021 on Google Scholar

F.S. 673.3021 on Casetext

Amendments to 673.3021

Arrestable Offenses / Crimes under Fla. Stat. 673.3021

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 673.3021.

Annotations, Discussions, Cases:

Cases from cite.case.law:

IN RE ELOWITZ s, 550 B.R. 603 (Bankr. S.D. Fla. 2016)

. . . . § 673.3021, A holder in due course has greater rights with respect to a negotiable instrument than . . .

M. RIVERA J. v. WELLS FARGO BANK, N. A. FDIC, 189 So. 3d 323 (Fla. Dist. Ct. App. 2016)

. . . writing under the Uniform Commercial Code, including, if the applicable statutory requirements under s. 673.3021 . . .

CARRILLO DEVELOPMENT, LLC, v. BAYVIEW LOAN SERVICING, LLC,, 193 So. 3d 4 (Fla. Dist. Ct. App. 2015)

. . . determinations that Bayview had standing, and that Bayview was a holder in due course as provided in section 673.3021 . . .

CITIBANK, N. A. v. DALESSIO, v., 756 F. Supp. 2d 1361 (M.D. Fla. 2010)

. . . . § 673.3021(1). . . . Stat. § 673.3021(1). . . .

DAIWA PRODUCTS, INC. v. NATIONSBANK, N. A., 885 So. 2d 884 (Fla. Dist. Ct. App. 2004)

. . . under the [letter of] credit and under circumstances which would make it a holder in due course (s.673.3021 . . . Section 675.114(2)(a) adopts the definition of “holder in due course” contained at section 673.3021, . . . Talcott, 830 So.2d 160, 164 (Fla. 4th DCA 2002) (quoting § 673.3021(1), Fla. Stat. (2001)). . . . March 30 and presented it to Nations-Bank on April 1 in “good faith” within the meaning of section 673.3021 . . . In Any Kind Checks, to apply the law requiring “good faith” under section 673.3021(l)(b)2., we adopted . . .

ANY KIND CHECKS CASHED, INC. a v. G. TALCOTT, Jr. GUARINO,, 830 So. 2d 160 (Fla. Dist. Ct. App. 2002)

. . . See § 673.3021(1), Fla. Stat. (2001). . . . That question turns on whether Any Kind acted “[i]n good faith” within the meaning of section 673.3021 . . . However, in 1992, the legislature adopted a new definition of “good faith” that applies to the section 673.3021 . . . To apply the law requiring “good faith” under section 673.3021(1), we adopt the analysis set forth by . . .

B. DAVIS A. v. B. STARLING, B. TRUST,, 799 So. 2d 373 (Fla. Dist. Ct. App. 2001)

. . . See § 673.3021(1)(b)1 & (3)(c), Fla. . . .

BARCLAYS BANK, P. L. C. v. CONKEY,, 695 So. 2d 931 (Fla. Dist. Ct. App. 1997)

. . . Barclays filed a motion for summary judgment, contending the undisputed facts showed that under section 673.3021 . . . the note under these circumstances, Barclays must be a holder in due course, as defined in section 673.3021 . . . Without notice that any party has a defense or claim in recoupment described in s. 673.3051(1). § 673.3021 . . . into question its authenticity” or “indicate that the instrument may not be what it purports to be.” § 673.3021 . . . Whether Bar-clays meets the remaining requirements of section 673.3021(l)(b), required of holder in due . . .

HOBLEY, v. METZ,, 630 So. 2d 625 (Fla. Dist. Ct. App. 1994)

. . . Accordingly, we reverse and remand for a jury trial. .Section 673.3021, Florida Statutes (Supp.1992) . . .