Florida Statutes
Fla. Stat. § 673.3021 (2025)
Holder in due course.
✓ 2025 Florida Statutes — current through the 2025 Regular Session
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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
(c) As the successor in interest to an estate or other organization.
(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.
Notes of Decisions
Cited in 9
cases, 1994–2016 · leading case: Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002).
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “However, in 1992, the legislature adopted a new definition of "good faith" that applies to the section 673.3021 definition of a holder in due course: "`[g]ood faith' means honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Citibank, N.A. v. Dalessio, 756 F. Supp. 2d 1361 (M.D. Fla. 2010). “Fla. Stat. § 673.3021 (1). As previously stated, Citibank demonstrated that it has standing to pursue this foreclosure action against Dalessio because it is the proper holder of the note.”
Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “114(2)(a) adopts the definition of "holder in due course" contained at section 673.3021, Florida Statutes (1997).”
In re Elowitz, 550 B.R. 603 (Bankr. S.D. Florida 2016). “See Fla. Stat. § 673.3021 , A holder in due course has greater rights with respect to a negotiable instrument than a mere holder.”
Davis v. Starling, 799 So. 2d 373 (Fla. 4th DCA 2001). “See § 673.3021(1)(b)1 & (3)(c), Fla. Stat. (2000) (person does not acquire rights of a holder in due course of an instrument taken as the successor in interest to an estate or other organization).”
Barclays Bank, P.L.C. v. Conkey, 695 So. 2d 931 (Fla. 2d DCA 1997). “§ 673.3021, Fla.Stat. (Supp.1992). In granting Mr.”
Cabrillo Dev., LLC v. Bayview Loan Servs., LLC (Fla. 3d DCA 2015). “Appellants assert, inter alia, that Bayview lacked standing to foreclose on the property at issue and that Bayview was not a holder in due course. We affirm the final judgment of foreclosure, concluding that there was competent substantial evidence to support the trial court’s…”
Carrillo Dev., LLC v. Bayview Loan Servicing, LLC, 193 So. 3d 4 (Fla. 3d DCA 2015). “We affirm the final judgment of foreclosure, concluding that there was competent substantial evidence to support the trial court’s determinations that Bayview had standing, and that Bayview was a holder in due course as provided in section 673.”
Hobley v. Metz, 630 So. 2d 625 (Fla. 3d DCA 1994). “Section 673.3021, Florida Statutes (Supp.”
— 673.3021(1) — 4 cases
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “However, in 1992, the legislature adopted a new definition of "good faith" that applies to the section 673.3021 definition of a holder in due course: "`[g]ood faith' means honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “114(2)(a) adopts the definition of "holder in due course" contained at section 673.3021, Florida Statutes (1997).”
Cabrillo Dev., LLC v. Bayview Loan Servs., LLC (Fla. 3d DCA 2015). “Appellants assert, inter alia, that Bayview lacked standing to foreclose on the property at issue and that Bayview was not a holder in due course. We affirm the final judgment of foreclosure, concluding that there was competent substantial evidence to support the trial court’s…”
Carrillo Dev., LLC v. Bayview Loan Servicing, LLC, 193 So. 3d 4 (Fla. 3d DCA 2015). “We affirm the final judgment of foreclosure, concluding that there was competent substantial evidence to support the trial court’s determinations that Bayview had standing, and that Bayview was a holder in due course as provided in section 673.”
— 673.3021(1)(b) — 3 cases
Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004). “114(2)(a) adopts the definition of "holder in due course" contained at section 673.3021, Florida Statutes (1997).”
Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “However, in 1992, the legislature adopted a new definition of "good faith" that applies to the section 673.3021 definition of a holder in due course: "`[g]ood faith' means honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Davis v. Starling, 799 So. 2d 373 (Fla. 4th DCA 2001). “See § 673.3021(1)(b)1 & (3)(c), Fla. Stat. (2000) (person does not acquire rights of a holder in due course of an instrument taken as the successor in interest to an estate or other organization).”
— 673.3021(a) — 1 case
Barclays Bank, P.L.C. v. Conkey, 695 So. 2d 931 (Fla. 2d DCA 1997). “§ 673.3021, Fla.Stat. (Supp.1992). In granting Mr.”
— 673.3021(l)(a) — 1 case
Barclays Bank, P.L.C. v. Conkey, 695 So. 2d 931 (Fla. 2d DCA 1997). “§ 673.3021, Fla.Stat. (Supp.1992). In granting Mr.”
— 673.3021(l)(b) — 1 case
Barclays Bank, P.L.C. v. Conkey, 695 So. 2d 931 (Fla. 2d DCA 1997). “§ 673.3021, Fla.Stat. (Supp.1992). In granting Mr.”
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