For value
One who has given a legal consideration for a negotiable instrument is a holder for value. The holder of a
negotiable note taken as collateral security for a preexisting debt is a holder for value in due course of business. Similarly, an endorsee of a negotiable note taken as collateral security for a preexisting debt, there being no extension of time of payment or other new consideration except such as may be deemed to arise from the acceptance of the paper, is a holder for value.
Due course
Legal term for an original or any subsequent holder of a negotiable instrument (check, draft, note, etc.) who
has accepted it in good-faith and has exchanged something valuable for it. For example, anyone who accepts a third-party check is a holder in due course. He or she has certain legal rights, and is presumed to be unaware that (if such were the case) the instrument was at any time overdue, dishonored when presented for payment, had any claims against it, or the party required to pay it has valid reason for not doing so. Also called protected holder.