To qualify as a holder in due course under the shelter principle,the holder can have notice of a defense or claim against the payment of the instrument.

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To qualify as a holder in due course under the shelter principle, the holder cannot have notice of a defense or claim against the payment of the instrument. The shelter principle only applies to the rights of a holder who has obtained the instrument from a holder in due course, but it does not protect a holder who had notice of any defect in the instrument or a defense against its payment.

To Qualify as a Holder in Due Course Under the Shelter