In legal terms, a “holder” typically refers to a person or entity that possesses or holds legal title or ownership rights to a negotiable instrument, such as a promissory note or a check. The holder has the legal right to enforce the instrument and receive payment from the party obligated to pay. The holder may be the original payee named on the instrument or someone who has obtained ownership rights through endorsement, assignment, or transfer. The concept of holder is significant in commercial transactions and contract law, as it determines who has the legal authority to enforce the rights associated with the instrument.
One who is in possession of something, usually the purchaser and owner.
n. a general term for anyone in possession of property, but usually referring to anyone holding a promissory note, check, bond or other paper, either handed to the holder (delivery) or signed over by endorsement, for which he/she/it is entitled to receive payment as stated in the document.
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This glossary post was last updated: 29th March, 2024.
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