shelter doctrine

shelter doctrine. Commercial law. The principle that a person to whom a holder in due course has transferred commercial paper, as well as any later transferee, will succeed to the rights of the holder in due course. • As a result, transferees of holders in due course are generally not subject to defenses against the payment of an instrument. This doctrine ensures the free transferability of commercial paper. Its name derives from the idea that the transferees “take shelter” in the rights of the holder in due course. [Cases: Bills and Notes 362. C.J.S. Bills and Notes; Letters of Credit § 189.]

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词条贡献者

法律翻译Roger，在一家顶尖欧洲律师事务所的北京办公室担任全职法律翻译，专注翻译各类与北欧业务有关的法律文件。