RIGHTS OF THE HOLDER
Sec. 51. Right of holder to sue; payment. - The holder of a negotiable instrument may to sue thereon in his own name; and payment to him in due course discharges the instrument.
RIGHTS OF A HOLDER IN GENERAL
1. He may sue on the instrument in his own name
2. He may receive payment and if the payment is in due course, the instrument is discharged
RIGHT TO SUE
• Holder of a negotiable instrument may sue on his own name, even if
he be a holder only for collection or as a pledge of the instrument
RIGHT OF TRANSFEREE OF UNINDORSED INSTRUMENT
• Such possessor may sue in his own name if his transferor could have done so
• Under Section 49, a transfer for value, but without indorsement, of an instrument is payable to order vests in the transferee such title as the transferor had therein.
EFFECT OF PAYMENT TO THE HOLDER
• The payment in due course to the holder of the instrument discharges the instrument
• It is in due course if it is made at or after the maturity of the
instrument; or to the holder thereof; in good faith and without notice
that his title is defective