Section 53060 Of Chapter 2. Definitions From California Health And Safety Code >> Division 31. >> Part 7. >> Chapter 2.

. "Holder-in-due course," means the purchaser of a loan or loans from a financial institution that participates in, arranges, or finances a loan pursuant to the provisions of this part, and who takes the loan instrument:
  (a) For value;
  (b) In good faith; and
  (c) Without notice that it is overdue or has been dishonored or of any defense against or claim to it on the part of any person.