J. MILLARD TAWES, Governor                        843

question its validity, terms or ownership or to create an ambiguity
as to the party to pay; or

(b) the purchaser has notice that the obligation of any party is
voidable in whole or in part, or that all parties have been discharged.

(2)  The purchaser has notice of a claim against the instrument
when he has knowledge that fiduciary has negotiated the instrument
in payment of or as security for his own debt or in any transaction
for his own benefit or otherwise in breach of duty.

(3)   The purchaser has notice that an instrument is overdue if he
has reason to know

(a)  that any part of the principal amount is overdue or that there
is an uncured default in payment of another instrument of the same
series; or

(b)  that acceleration of the instrument has been made; or

(c)  that he is taking a demand instrument after demand has been
made or more than a reasonable length of time after its issue. A
reasonable time for a check drawn and payable within the states and
territories of the United States and the District of Columbia is
presumed to be thirty days.

(4) Knowledge of the following facts does not of itself give the
purchaser notice of a defense or claim

(a)  that the instrument is antedated or postdated;

(b)  that it was issued or negotiated in return for an executory
promise or accompanied by a separate agreement unless the pur-
chaser has notice that a defense or claim has arisen from the terms
thereof;

(c)  that any party has signed for accommodation;

(d)  that an incomplete instrument has been completed unless the
purchaser has notice of any improper completion;

(e)  that any person negotiating the instrument is or was a fidu-
ciary;

(f)  that there has been default in payment of interest on the
instrument or in payment of any other instrument, except one of the
same series.

(5)   The filing or recording of a document does not of itself con-
stitute notice within the provisions of this Sub-title to a person who
would otherwise be a holder in due course.

(6)   To be effective notice must be received at such time and in such
manner as to give a reasonable opportunity to act on it.

3—305. Rights of a Holder in Due Course.

To the extent that a holder is a holder in due course he takes the
instrument free from

(1)  all claims to it on the part of any person; and

(2)  all defenses of any party to the instrument with whom the
holder has not dealt except