842                               LAWS OF MARYLAND                        [CH. 538

and reissue or further negotiate the instrument, but any intervening
party is discharged as against the reacquiring party and subsequent
holders not in due course and if his indorsement has been cancelled
is discharged as against subsequent holders in due course as well.

Part 3

Rights of a Holder
3—301. Rights of a Holder.

The holder of an instrument whether or not he is the owner may
transfer or negotiate it and, except as otherwise provided in Section
3—603 on payment or satisfaction, discharge it or enforce payment
in his own name.

3—302. Holder in Due Course.

(1)  A holder in due course is a holder who takes the instrument

(a)  for value; and

(b)  in good faith; and

(c)  without notice that it is overdue or has been dishonored or of
any defense against or claim to it on the part of any person.

(2)  A payee may be a holder in due course.

(3)  A holder does not become a holder in due course of an instru-
ment:

(a)  by purchase of it at judicial sale or by taking it under legal
process; or

(b)  by acquiring it in taking over an estate; or

(c)  by purchasing it as part of a bulk transaction not in regular
course of business of the transferor.

(4) A purchaser of a limited interest can be a holder in due course
only to the extent of the interest purchased.

3—303. Taking for Value.

A holder takes the instrument for value.

(a)  to the extent that the agreed consideration has been performed
or that he acquires a security interest in or a lien on the instrument
otherwise than by legal process; or

(b)  when he takes the instrument in payment of or as security for
an antecedent claim against any person whether or not the claim is
due; or

(c)  when he gives a negotiable instrument for it or makes an irre-
vocable commitment to a third person.

3—304. Notice to Purchaser.

(1) The purchaser has notice of a claim or defense if

(a) the instrument is so incomplete, bears such visible evidence
of forgery or alteration, or is otherwise so irregular as to call into