Commerce Bank, N.A. v. Rickett

The opinion of the court was delivered by

NEWMAN, J.A.D.

This appeal questions whether a bank can be a holder in due course when it makes payment on a check, dated a year before it was presented, which, in fact, was presented within ninety days after the date of its actual issuance. We hold that, pursuant to N.J.S.A. 12A:3-304a(2), a cheek becomes “overdue” ninety days after the date it is actually issued and, thus, the bank retains its holder in due course status.

The facts, which are not in dispute, may be summarized as follows. On January 5,1998, defendant, Bruce Rickett, individually and…