bona fide purchaser

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Related to Bona Fide Purchasers: Bona fide purchaser for value without notice

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 ?
New Delhi [India], Aug 18 ( ANI ): The Prevention of Money-Laundering Act (PMLA) Appellate Tribunal on Saturday released the attachment on flats owned by bona fide purchasers in the 'Kingfisher Towers', which had been attached by the Enforcement Directorate (ED) in relation to fugitive liquor baron Vijay Mallya/ United Breweries Holding Limited (UBHL) case.
of bona fide purchasers. The operative part of the judgement stipulates
In a system of immediate indefeasibility, bona fide purchasers for value of the fee simple interest acquire indefeasible title on registration of their interest, even if acquired from a rogue on the basis of a forged instrument.
Under a Notice-type statute, as soon as the second-in-time deed is delivered to a bona fide purchaser, the prior grantee who had yet to record is divested of his or her title that conflicts with the grant to the subsequent purchaser.
In the Texas statute at issue, unrecorded conveyances are void as to creditors and bona fide purchasers without notice, but between the parties and as to purchasers with notice or who have not given valuable consideration, such conveyances are valid and binding.
(85) Bona fide purchasers (of property) without notice of the breach of fiduciary duty (or the competing interests of other parties) will have a defence based on the consideration provided: Say-Dee [2005] NSWCA 309 (Unreported, Mason P, Giles and Tobias JJA, 15 September 2005) [175], [211], [219], [234] (Tobias JA), accepting the bona fide purchaser defence to the personal unjust enrichment claim.
* Supports amending [subsection] 701.02 (Assignment of Mortgages) to conform it to revised UCC Article 9 and provide that: 1.) perfection of UCC security interest in a pledged mortgage is governed solely by the UCC and not by [subsection] 701.02, and 2.) filing of a UCC financing statement is not "notice" under [subsection] 701.02 and does not affect reliance rights of creditors and bona fide purchasers without notice with respect to instruments executed by the "mortgagee of record" as determined under [subsections] 701.02.
Bona fide purchasers would then qualify for federal liability protection against lawsuits filed by the federal government or third parties if they fulfill the inquiry requirements and have taken good care of the property.
Conversely, where there is fraud, then section 44 provides that only those registered proprietors who are bona fide purchasers for value may gain the shelter of section 42.
Other relevant portions of the administration's bill which impact municipalities include the conditional exemption from liability for bona fide purchasers of contaminated property, and the provision of technical assistance to municipalities to conduct site characterizations for facilities at which voluntary response actions are being conducted.
State law subordinates a seller's reclamation rights to the rights of bona fide purchasers. Most state courts hold that a lender which has a lien on a debtor's inventory is a bona fide purchaser of that inventory.