LLOYD LOWNDES, ESQUIRE, GOVERNOR. 217

71. A holder in due course is a holder who has taken the
instrument under the following conditions:

1. That it is complete and regular upon its face.

2. That he became the holder of it before it was overdue,
and without notice that it had been previously dishonored, if
such was the fact.

3. That he took it in good faith and for value.

4. That at the time it was negotiated to him he had no
notice of any infirmity in the instrument or defect in the title
of the person negotiating, it.

72. Where an instrument payable on demand is negotiated
an unreasonable length of time after its issue, the holder is not
deemed a holder in due course.

73. Where the transferee receives notice of any infirmity in
the instrument or defect in the title of the person negotiating
the same before he has paid the full amount agreed to be paid
therefor, he will be deemed a holder in due course only to the
extent of the amount theretofore paid by him.

74. The title of a person who negotiates an instrument is
defective within the meaning of this Act, when he obtained
the instrument, or any signature thereto, by fraud, duress, or
force and fear, or other unlawful means, or for an illegal con-
sideration, or when he negotiates it in breach of faith, or
under such circumstances as amount to a fraud.

75. To constitute notice of an infirmity in the instrument or
defect in the title of the person negotiating the same, the per-
son to whom it is negotiated must have had actual knowledge
of the infirmity or defect, or knowledge of such facts that his
action in taking the instrument amounted to bad faith.

76. A holder in due course holds the instrument free from,
any defect of title of prior parties, and free from defenses
available to prior parties amoijg themselves, and may enforce
payment of the instrument for the full amount thereof against
all parties liable thereon.

77. In the hands of any holder other than a holder in due
course, a negotiable instrument is subject to the same defenses
as if it were non-negotiable. But a holder who derives his
title through a holder in due course, and who is not himself a
party to any fraud or illegality affecting the instrument, has all
the rights of such former holder in respect of all parties prior
to the latter.

78. Every holder is deemed prima facie to be a holder in.
due course; but when it is shown that the title of any person