Section 25 Good Faith

LibraryCommercial Law 2007

To qualify as a holder in due course under UCC Article 3, a holder must take the instrument in good faith. Section 400.3-302(a)(2)(ii), RSMo 2000. “Good faith” is defined as “honesty in fact in the conduct or transaction concerned,” suggesting that the test of good faith under revised UCC Article 3 is subjective. Section 400.3-103(a)(4), RSMo Supp. 2006; Dalton & Marberry, P.C. v. NationsBank, N.A., Nos. WD 53453, WD 53485, 1998 WL 36386 (Mo. App. W.D. Feb. 3, 1998), transferred, 982 S.W.2d 231 (Mo. banc 1998); Godat v. Mercantile Bank of Nw. County,884 S.W.2d 1 (Mo. App...

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