50Holder in due course defined

#### 50 Holder in due course defined (1) The holder of a cheque is a holder in due course if: (a) the cheque was transferred by negotiation to the holder and, at the time when the holder took the cheque, the cheque: (i) was complete and regular on the face of it; (ii) was not a stale cheque; and (iii) did not bear a crossing of the kind referred to in paragraph 53(1)(b); and (b) the holder took the cheque: (i) in good faith; (ii) for value; and (iii) without notice: (A) of any dishonour of the cheque; or (B) of any defect in the title of the person who transferred the cheque to the holder or that the person who transferred the cheque to the holder had no title to the cheque. (2) Without limiting the generality of paragraph (1)(b), the holder of a cheque shall, for the purposes of that paragraph, be deemed to have taken the cheque with notice of a defect in the title of the person who transferred the cheque to the holder if the holder took the cheque with notice that the person transferred the cheque to the holder in breach of faith or under circumstances amounting to a fraud.