A holder who takes a bill, complete and regular on the face of it, under the following conditions:
• that they became the holder of it before it was overdue, and without notice that it has been previously dishonoured, if such was the case, and
• that they took the bill in good faith and for value, and that at the time the bill was negotiated to them they had no notice of any defect in the title of the person who negotiated it.
Until the contrary is proved, every holder is deemed to be a holder in due course. This applies to all holders except the original payee as it has been held that they cannot be holder in due course. The rights of the holder in due course are not affected when the acceptor or other party has been induced to sign the bill by fraud.