payment in due course

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Payment made at or after the maturity of a bill of exchange to the holder of the bill by a payer in good faith and without notice that the holder's title to the bill is defective. A bill is discharged by payment in due course by or on behalf of the drawee or acceptor. When a bill is paid by the drawer or endorser it is not discharged and the party paying may have rights on it.

Subjects: Law.

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