A holder in due course must take the negotiable instrument in good faith.

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According to Uniform Commercial Code (UCC)Section 3-302(a)(2)(ii),a holder in due course must take the negotiable instrument in good faith.UCC Section 3-103(a)(4)defines good faith as "honesty in fact and the observance of reasonable commercial standards of fair dealing." Therefore,to act in good faith,a holder must not deviate from the reasonable commercial standards of fair dealing.The UCC drafters were most concerned with the fairness of the dealing.

A Holder in Due Course Must Take the Negotiable Instrument