Negotiable Instruments Act Section 53 — Holder deriving title from holder in due course

CHAPTER IV OF NEGOTIATION

General

Summary

If you receive a negotiable instrument from someone who is a holder in due course, you get the same legal rights over that instrument that they had. This means you can enforce the instrument as if you were the holder in due course yourself, even if you would not otherwise qualify as one.

Official Text

A holder of a negotiable instrument who derives title from a holder in due course has the rights thereon of that holder in due course.