bona fide purchaser

noun
bona fide pur·​chas·​er

Legal Definition of bona fide purchaser

: a purchaser who purchases in good faith without notice of any defect in title and for a valuable consideration

called also bona fide purchaser for value

Note: There are particular requirements for a bona fide purchaser of a security set out in Uniform Commercial Code section 8-302. Under this section a bona fide purchaser is one who buys a security in good faith and without notice of any adverse claims and who takes delivery of a certificated security either as a bearer security or as a registered security issued to him or her or endorsed to him or her or by a blank endorsement or to whom the transfer of an uncertificated security is registered on the books of the issuer, or as otherwise provided in section 8-313.

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Cite this Entry

“Bona fide purchaser.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/bona%20fide%20purchaser. Accessed 24 Jul. 2021.

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