49Rights acquired by transfer by negotiation

#### 49 Rights acquired by transfer by negotiation (1) The holder of a cheque may sue on the cheque in the holder’s own name. (2) A holder of a cheque who is a holder in due course: (a) holds the cheque free from any defect in the title of prior parties as well as from mere personal defences available to prior parties against one another; and (b) may enforce payment of the cheque against any person liable on the cheque. (3) Where: (a) the title of the holder of a cheque is defective; and (b) the holder transfers the cheque by negotiation to a holder in due course; the holder in due course receives a good and complete title to the cheque.