bona fide purchaser


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bona fide purchaser

n. commonly called BFP in legal and banking circles; one who has purchased an asset (including a promissory note, bond or other negotiable instrument) for stated value, innocent of any fact which would cast doubt on the right of the seller to have sold it in good faith. This is vital if the true owner shows up to claim title, since the BFP will be able to keep the asset, and the real owner will have to look to the fraudulent seller for recompense. (See: BFP, holder in due course)

References in periodicals archive ?
they cannot be applied to bona fide purchaser, unless directly specified
The proviso in section 27(b)(i) did not apply because Mr Levy could not show that he was a bona fide purchaser for value without notice.
Thus, if a bona fide purchaser acquires a fee simple interest from a rogue and then transfers that interest to another bona fide purchaser, the second purchaser would acquire indefeasible title, but the first would not.
Title remains in A, but to a bona fide purchaser (17) who does a title search, B appears to be the owner of part of the land granted to A.
On appeal, the county argued that when a developer conveys to a bona fide purchaser a lot that was previously assessed at the developer's acquisition cost, the lot must be revalued at its purchase price regardless of whether it contains a building.
I observe that to impose the requirement of bona fide purchaser for value in section 43 appears to negate the discrimination imposed by the statute--why distinguish between instances of registration according to whether there was fraud if the end result is the same?
That, however, is not likely to be the case because the buyer, to be secure in title (meaning superior to all others), must be a bona fide purchaser without notice of the pending action and the possibility that the seller may be obligated, through the loss of a specific performance suit, to convey title to another earlier contracting party.
For example, the mortgage may not be perfected under state law against a bona fide purchaser if the signatures on the loan documents were not properly acknowledged; the documents were improperly delivered or executed; the person or entity executing the loan documents on behalf of the borrower was improperly authorized; the description of the collateral was incorrect, or the mortgage was indexed against the wrong name or the wrong parcel, (N.
It appeared that EDEA's argument was that EDEA was a bona fide purchaser for value, who took the premises free of the unrecorded lease.
The Bankruptcy Code creates a hypothetical bona fide purchaser and states that if the lien was not perfected or enforceable at the time of the bankruptcy filing, the hypothetical bona fide purchaser may avoid the lien.
Even then it was clear that the Convention required special rules which would deviate from the tried and trusted rules promoting exchange of goods, in the first place Article 2014 of the Dutch Civil Code, then in force, which protected the bona fide purchaser of a movable object at the cost of the dispossessed owner.