Okla. Stat. » Title 12A — UNIFORM COMMERCIAL CODE
Oklahoma Statutes

Okla. Stat. tit. 12A, § 3-302 (2026)

Holder in Due Course

✓ current as of July 2026
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HOLDER IN DUE COURSE (a) Subject to subsection (c) of this section and subsection (d) of Section 3-106 of this title, "holder in due course" means the holder of an instrument if: (1) 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 (2) the holder took the instrument (i) for value, (ii) in good faith, (iii) 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, (iv) without notice that the instrument contains an unauthorized signature or has been altered, (v) without notice of any claim to the instrument described in Section 3-306 of this title, and (vi) without notice that any party has a defense or claim in recoupment described in subsection (a) of Section 3-305 of this title. (b) Notice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (a) of this section, 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. (c) 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 (i) by legal process or by purchase in an execution, bankruptcy, or creditor's sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of business of the transferor, or (iii) as the successor in interest to an estate or other organization. (d) If, under paragraph (1) of subsection (a) of Section 3-303 of this title, 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.

(e) If (i) the person entitled to enforce an instrument has only a security interest in the instrument and (ii) 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. (f) To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it. (g) This section is subject to any law limiting status as a holder in due course in particular classes of transactions. Laws 1961, p. 108, § 3-302; Laws 1991, c. 117, § 53, eff. Jan. 1, 1992.

Notes of Decisions
Cited in 16 cases, 1966–2015 · leading case: Sunrizon Homes, Inc. v. Am. Guar. Inv. Corp., 782 P.2d 103 (Okla. 1989).
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Sunrizon Homes, Inc. v. Am. Guar. Inv. Corp., 782 P.2d 103 (Okla. 1989). · cites it 4× “[3] Pursuant to 12A O.S. 1981 § 3-302, before one may be a holder in due course, the holder must take an "instrument.”
Goss v. Trinity Sav. & Loan Ass'n, 813 P.2d 492 (Okla. 1991). “A person taking a negotiable instrument is a holder in due course provided he satisfies the requirements of 12A O.S.1981, § 3-302. That section provides: (1) A holder in due course is a holder who takes the instrument (a) for value; and (b) in good faith; and (c) without notice…”
North Side State Bank v. Bd. of Cnty. Commissioners, 894 P.2d 1046 (Okla. 1994). “” 12A O.S.1981 § 3-302. The 1991 amendment to this section has no legal effect on this appeal.”
Expert South Tulsa, LLC v. Cornerstone Creek Partners, LLC (In re Expert South Tulsa, LLC), 534 B.R. 400 (10th Cir. BAP 2015). “See Okla. Stat. tit. 12A, § 3-302, defining “holder in due course.”
Shepherd Mall State Bank v. Johnson, 603 P.2d 1115 (Okla. 1979). “See 12A O.S.1971 § 3-302. 3 . It is provided by 12A O.”
Haines Pipeline Constr., Inc. v. Exline Gas Sys., Inc., 921 P.2d 955 (Okla. Civ. App. 1996). · cites it 4× “See 12A O.S.1981 § 3-302(1). 5 The term “instrument,” as used in § 3-302(1), “means a negotiable instrument.”
Russell v. Maxson Sales Co., 591 P.2d 703 (Okla. 1979). · cites it 2× “See 12A O.S. 1971, §§ 3-302, 4-208 and 4-209.”
First Nat'l Bank v. Duncan Sav. & Loan Ass'n, 656 F. Supp. 358 (W.D. Okla. 1987). “Anticipating Defendant’s argument that Plaintiff did not take the money order "for value,” Okla.Stat. tit. 12A, § 3-302, Plaintiff asserts that it took the money order as payment of an antecedent debt of McAffrey Funeral Home, Inc.”
Peoples Bank of Aurora v. Haar, 421 P.2d 817 (Okla. 1966). “12A O.S.1961, § 3-302, defines a holder in due course.”
Oklahoma Nat'l Bank v. Equitable Credit Fin. Co., 489 P.2d 1331 (Okla. 1971). “Our Commercial Code, 12A O.S.1961, § 3-302(1), defines a holder in due course: “A holder in due course is a holder who takes the instrument (a) for value; and (b) in good faith; and *1334 (c) without notice that it is overdue or has been dishonored or of any defense against or…”
Perry v. Cain, 581 P.2d 891 (Okla. 1978). “12A O.S.1971, §§ 3-302 & 3-305. Bondsman may not be heard to suggest she is entitled to holder in due course status as she was the original obligee on the instrument and was intimately involved with the transaction from which the defense to the underlying obligation arose.”
Friendly Nat'l Bank of Sw. Oklahoma City v. Farmers Ins. Grp., 630 P.2d 318 (Okla. 1981). · cites it 2× “12A O.S.1971, § 3-302 defines a holder in due course.”
Show all 16 citing cases →
— Okla. Stat. tit. 12A, § 3-302(1) — 2 cases
Oklahoma Nat'l Bank v. Equitable Credit Fin. Co., 489 P.2d 1331 (Okla. 1971). “Our Commercial Code, 12A O.S.1961, § 3-302(1), defines a holder in due course: “A holder in due course is a holder who takes the instrument (a) for value; and (b) in good faith; and *1334 (c) without notice that it is overdue or has been dishonored or of any defense against or…”
Haines Pipeline Constr., Inc. v. Exline Gas Sys., Inc., 921 P.2d 955 (Okla. Civ. App. 1996). “See 12A O.S.1981 § 3-302(1). 5 The term “instrument,” as used in § 3-302(1), “means a negotiable instrument.”
— Okla. Stat. tit. 12A, § 3-302(a) — 1 case
Haines Pipeline Constr., Inc. v. Exline Gas Sys., Inc., 921 P.2d 955 (Okla. Civ. App. 1996). “See 12A O.S.1981 § 3-302(1). 5 The term “instrument,” as used in § 3-302(1), “means a negotiable instrument.”
— Okla. Stat. tit. 12A, § 3-302(c) — 1 case
Haines Pipeline Constr., Inc. v. Exline Gas Sys., Inc., 921 P.2d 955 (Okla. Civ. App. 1996). “See 12A O.S.1981 § 3-302(1). 5 The term “instrument,” as used in § 3-302(1), “means a negotiable instrument.”
— Okla. Stat. tit. 12A, § 3-302(l)(e) — 1 case
Haines Pipeline Constr., Inc. v. Exline Gas Sys., Inc., 921 P.2d 955 (Okla. Civ. App. 1996). “See 12A O.S.1981 § 3-302(1). 5 The term “instrument,” as used in § 3-302(1), “means a negotiable instrument.”
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