Difference between holder and HDC (Holder in due course)
| BASIS | HOLDER | HDC |
| Consideration | A person becomes a holder even if he obtains the negotiable instrument without any consideration. | A person becomes HDC only if he obtains the negotiable instrument for consideration. |
| Before maturity | A person becomes a holder even if he obtains the negotiable instrument after the maturity of the negotiable instrument. | A person becomes HDC only if he obtains the negotiable instrument before its maturity. |
| Good Faith | A person becomes the holder, even if he does not obtain the negotiable instrument in good faith. | HDC, a person who obtain the negotiable instrument on good faith. |
| Privileges | A holder is not entitled to the privileges, which are available for HDC. | A HDC is entitled to various privileges as specified under the negotiable instrument act, 1881. |
| Right to use | A holder can not sue all the prior parties. | A HDC can sue all the prior parties. |
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