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What is the difference between a holder and a holder in due course? Define each and explain the differences.
A holder is one
Under the Uniform Negotiable Instruments Act, a holder in due course is one who meets two special pre-requisites:
What is a bearer?
A bearer instrument is a legal document which indicates that the bearer or the holder of the instrument has the title to the property such as shares or the bonds. It differs from normal registered instruments in the way that no records are kept who owns the underlying property and no new records are created when the ownership of the bearer instrument is transferred.
Whosoever holds the bearer instrument holds the underlying property. Such instruments are backed by the law.
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