Who is deemed to be a holder in due course?

General Rule: Every holder is deemed prima facie to be a holder in due course;

Exception: When it is shown that the title of any person who has negotiated the instrument was defective. (Sec.59)

Can a payee be a holder in due course?

There can be no doubt that a proper interpretation of NIL as a whole leads to the conclusion that a payee may be a holder in due course under the circumstances in which he meets the requirements of Sec. 52. (De Ocampo v. Gatchalian, G.R. No. L-­‐15126, Nov. 30, 1961) Note: There is a contrary view on the matter, wherein it is contended that under subsection 4 of Sec. 52, the holder in due course must have acquired the instrument through negotiation and an instrument is issued and not negotiated to a payee.