Act No. 2031 Section 54

Notice before full amount paid.

Section 54

SEC. 54. Notice before full amount paid.— Where the transferee receives notice of any infirmity in the instrument or defect in the title of the person negotiating the same before he has paid the full amount agreed to be paid therefor, he will be deemed a holder in due course only to the extent of the amount theretofore paid by him.