N.Y. U.C.C. 3-302

Section 3--302. Holder in Due Course.\n (1) A holder in due course is a holder who takes the instrument\n (a) for value; and\n (b) in good faith; and\n (c) without notice that it is overdue or has been dishonored or\n of any defense against or claim to it on the part of any\n person.\n (2) A payee may be a holder in due course.\n (3) A holder does not become a holder in due course of an instrument:\n (a) by purchase of it at judicial sale or by taking it under\n legal process; or\n (b) by acquiring it in taking over an estate; or\n (c) by purchasing it as part of a bulk transaction not in regular\n course of business of the transferor.\n (4) A purchaser of a limited interest can be a holder in due course\nonly to the extent of the interest purchased.\n