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RIGHT OF HOLDER NOT IN DUE COURSE
TO RECEIVE PAYMENT.
• It does not follow as a legal proposition that simply because one is not a
holder in due course he cannot recover on the instrument. The law does not
provide that a holder not in due course may not, in any case, recover on the
instrument. If B, for instance, purchases from A an overdue negotiable
promissory note signed by M, B is not a holder in due course but he may
recover from M (Sec. 51.) or A, if M or A has no valid excuse for refusing
payment. The only disadvantage of a holder who is not a holder in due course
is that the negotiable instrument is subject to defenses as if it were nonnegotiable.
(Sec. 58; Chan Wan vs. Tan Kim, 109 Phil. 76 [1960].)