CA Health & Safety Code Section 53060

“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.