Duly Negotiated Law and Legal Definition

A document is duly negotiated if it is negotiated in the manner stated in the Uniform Co to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation. [U.C.C. § 7-501].