Florida Statute 673.3021 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 673
UNIFORM COMMERCIAL CODE: NEGOTIABLE INSTRUMENTS

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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

(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.

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Amendments to 673.3021

Annotations, Discussions, Cases:

Cases Citing Statute 673.3021

Total Results: 9 | Sort by: Relevance | Newest First

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Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002).

Cited 9 times | Published | Florida 4th District Court of Appeal | 48 U.C.C. Rep. Serv. 2d (West) 800

...Any Kind's entitlement to holder in due course status. A "holder in due course" is a holder who takes an instrument without "apparent evidence of forgery or alteration" for value, in good faith, and without notice of certain claims and defenses. See § 673.3021(1), Fla....

...The question for this court is whether the trial court erred in finding that Any Kind was not a holder in due course of the $10,000 check based on the findings of fact made at trial, keeping in mind that Any Kind bore the burden of proof. That question turns on whether Any Kind acted "[i]n good faith" within the meaning of section 673.3021(1)(b)2....

...ith holder in due course status. It is undisputed that Any Kind's employees were pure of heart, that they acted without knowledge of Guarino's wrongdoing. 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." Ch....

...view of the underlying transaction and all of its participants. A holder "must act in a way that is fair according to commercial standards that are themselves reasonable." Maine Family, 727 A.2d at 343. To apply the law requiring "good faith" under section 673.3021(1), we adopt the analysis set forth by the Supreme Court of Maine: The factfinder must ......

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Daiwa Prods., Inc. v. NATIONSBANK, NA, 885 So. 2d 884 (Fla. 4th DCA 2004).

Cited 4 times | Published | Florida 4th District Court of Appeal | 2004 WL 1933124

...he draft or demand for payment if honor is demanded by a negotiating bank or other holder of the draft or demand which has taken the draft or demand under the [letter of] credit [2] and under circumstances which would make it a holder in due course (s.673.3021).......

...SAAT's general manager and employees were on-site and working. From his observations, the bank's employee concluded that SAAT's plant was "fully functional" on March 16, 1999. Section 675.114(2)(a) adopts the definition of "holder in due course" contained at section 673.3021, Florida Statutes (1997)....

...Under that section, a "holder in due course" is a "holder who takes an instrument without `apparent evidence of forgery or alteration' for value, in good faith, and without notice of certain claims and defenses." Any Kind Checks Cashed, Inc. v. Talcott, 830 So.2d 160, 164 (Fla. 4th DCA 2002) (quoting § 673.3021(1), Fla. Stat. (2001)). In this case, the issue boiled down to whether United Mizrahi accepted the draft on March 30 and presented it to NationsBank on April 1 in "good faith" within the meaning of section 673.3021(1)(b)2....

...of Canada, 727 A.2d 335, 342 (Me.1999). No longer may a holder of an instrument act with "a pure heart and an empty head and still obtain holder in due course status." Id. 830 So.2d at 165. In Any Kind Checks, to apply the law requiring "good faith" under section 673.3021(1)(b)2., we adopted the following analysis by the Maine Supreme Court: The factfinder must ......

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

Cited 4 times | Published | District Court, M.D. Florida | 2010 WL 5137601

...nauthorized signature or has been altered; (5) without notice of any claim to the instrument described in section 673.3061; and (6) without notice that any party has a defense or claim in *1367 recoupment described in section 673.3051(1). 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. Citibank is a holder in due course pursuant to Fla. Stat. § 673.3021(1)....

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Davis v. Starling, 799 So. 2d 373 (Fla. 4th DCA 2001).

Cited 3 times | Published | Florida 4th District Court of Appeal | 2001 WL 1415912

...Wright Properties Inc., 427 So.2d 783 (Fla. 4th DCA 1983). The daughter is merely a holder of the mortgage, rather than a holder in due course, because she gave no value and acquired her interest by virtue of her status as the beneficiary of the trust. See § 673.3021(1)(b)1 & (3)(c), Fla....

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In re Elowitz, 550 B.R. 603 (Bankr. S.D. Fla. 2016).

Published | United States Bankruptcy Court, S.D. Florida. | 75 Collier Bankr. Cas. 2d 1237, 26 Fla. L. Weekly Fed. B 205, 89 U.C.C. Rep. Serv. 2d (West) 823, 2016 Bankr. LEXIS 2206

..."Bearer” means “a person in possession of a negotiable instrument ... that is payable to bearer or indorsed in blank,” Fla. Stat. § 671.201 (5). .The “holder” of an instrument qualifies as • a "holder in due course” if it meets additional criteria. See Fla. Stat. § 673.3021 , A holder in due course has greater rights with respect to a negotiable instrument than a mere holder....

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Barclays Bank, P.L.C. v. Conkey, 695 So. 2d 931 (Fla. Dist. Ct. App. 1997).

Published | District Court of Appeal of Florida | 35 U.C.C. Rep. Serv. 2d (West) 946, 1997 Fla. App. LEXIS 7245, 1997 WL 355187

contending the undisputed facts showed that under section 673.3021, Florida Statutes (Supp.1992), Barclays “took

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Hobley v. Metz, 630 So. 2d 625 (Fla. 1st DCA 1994).

Published | Florida 1st District Court of Appeal | 1994 Fla. App. LEXIS 3, 1994 WL 1269

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

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Carrillo Dev., LLC v. Bayview Loan Servicing, LLC, 193 So. 3d 4 (Fla. 3d DCA 2015).

Published | Florida 3rd District Court of Appeal | 2015 Fla. App. LEXIS 19222, 2015 WL 9315732

...in due course. 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 673.3021(1), Florida Statutes (2010)....

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Cabrillo Dev., LLC v. Bayview Loan Servs., LLC (Fla. 3d DCA 2015).

Published | Florida 3rd District Court of Appeal

...holder in due course. 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 673.3021(1), Florida Statutes (2010)....

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