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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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.

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Amendments to 673.3021

Annotations, Discussions, Cases:

Cases Citing Statute 673.3021

Total Results: 9

Any Kind Checks Cashed, Inc. v. Talcott

830 So. 2d 160, 48 U.C.C. Rep. Serv. 2d (West) 800

District Court of Appeal of Florida | Filed: Oct 9, 2002 | Docket: 1516853

Cited 9 times | Published

without notice of certain claims and defenses. See § 673.3021(1), Fla. Stat. (2001). As the party claiming

Citibank, N.A. v. Dalessio

756 F. Supp. 2d 1361, 2010 WL 5137601

District Court, M.D. Florida | Filed: Dec 10, 2010 | Docket: 2344031

Cited 4 times | Published

described in section 673.3051(1). Fla. Stat. § 673.3021(1). As previously stated, Citibank demonstrated

Daiwa Products, Inc. v. NATIONSBANK, NA

885 So. 2d 884, 2004 WL 1933124

District Court of Appeal of Florida | Filed: Sep 1, 2004 | Docket: 2549118

Cited 4 times | Published

definition of "holder in due course" contained at section 673.3021, Florida Statutes (1997). Under that section

Davis v. Starling

799 So. 2d 373, 2001 WL 1415912

District Court of Appeal of Florida | Filed: Nov 14, 2001 | Docket: 1681791

Cited 3 times | Published

her status as the beneficiary of the trust. See § 673.3021(1)(b)1 & (3)(c), Fla. Stat. (2000) (person does

In re Elowitz

550 B.R. 603, 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

United States Bankruptcy Court, S.D. Florida. | Filed: May 17, 2016 | Docket: 65788662

Published

it meets additional criteria. See Fla. Stat. § 673.3021, A holder in due course has greater rights with

Carrillo Development, LLC v. Bayview Loan Servicing, LLC

193 So. 3d 4, 2015 Fla. App. LEXIS 19222, 2015 WL 9315732

District Court of Appeal of Florida | Filed: Dec 23, 2015 | Docket: 60255685

Published

was a holder in due course as provided in section 673.3021(1), Florida Statutes (2010). See § 673.3051

Cabrillo Development, LLC v. Bayview Loan Services, LLC

District Court of Appeal of Florida | Filed: Dec 23, 2015 | Docket: 3023612

Published

was a holder in due course as provided in section 673.3021(1), Florida Statutes (2010). See § 673.3051

Barclays Bank, P.L.C. v. Conkey

695 So. 2d 931, 35 U.C.C. Rep. Serv. 2d (West) 946, 1997 Fla. App. LEXIS 7245, 1997 WL 355187

District Court of Appeal of Florida | Filed: Jun 27, 1997 | Docket: 64774386

Published

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

Hobley v. Metz

630 So. 2d 625, 1994 Fla. App. LEXIS 3, 1994 WL 1269

District Court of Appeal of Florida | Filed: Jan 4, 1994 | Docket: 64745846

Published

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