Section 38Part 2 — Bills of Exchange
Rights of the holder
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The rights and powers of the holder of a bill are as follows —
the holder may sue on the bill in the holder’s own name;
where the holder is a holder in due course, the holder holds the bill free from any defect of titles of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill; and
where the holder’s title is defective —
if the holder negotiates the bill to a holder in due course, that holder obtains a good and complete title to the bill; and
if the holder obtains payment of the bill, the person who pays the holder in due course gets a valid discharge for the bill.