Transferability an instrument is negotiated when transferred to a transferee. That person is a holder (person in possession of the instrument). A holder receives the rights in the instrument that the prior possessor held. Under certain circumstances depending on what the new holder knows about the instrument, a new holder (unaware of any fraud, deficiency in, or other defense to the instrument) can take the instrument at full value. Such a person is a holder in due course because he takes for value and without notice of any defects in it. As a holder in due course he is entitled to payment under the instrument.

True or False?