A holder is a person in ownership of an instrument payable to bearer or to the identified person possessing it. But a holder’s rights are ordinary
If a person to whom an instrument is confer becomes nothing more than a holder, the law of commercial paper would not be very crucial, nor would a negotiable instrument be a particularly useful commercial device.
A mere holder is simply an assignee, who get the assignor’s rights but also his liabilities, a usual holder must defend against claims and overcome defenses just as his assignor would.
What the holder in due course gets is an instrument free of claims or defenses by former possessors.
A holder with such a preferred position can then treat the instrument almost as money, free from the worry that someone might show up and prove it faulty.
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