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The holder in due course requirement gives three requirements for a holder to be a holder in due course, value, good faith, and no notice.

The holder in due course requirement gives three requirements for a holder to be a holder in due course, value, good faith, and no notice. Assuming that P took checks for value, then the only issues that remains is whether P had taken in good faith, and had no notice that Ds check are overdue, dishonored, or other disputes on it. It wouldnt matter if the check was postdated or P was aware of Ds financial situation. However, P should not take checks that they deem suspicious as that would be in bad faith and if P is a regular business partner or employee of D, P might be prevented from being a holder in due course due to having too close connection with D, the close connection doctrine.

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