Business Law: Discussion: Holder Vs. Holder In Due Course

What is the difference between a holder and a holder in due course? Define each and explain the differences.

An example of the holder and holder in due course can happen in a contractual arrangement where the holder is the receiver of payment for an invoice for work accomplished on a contract.  The holder in due course can be a bank that provides a loan to the holder for advance payment for materials and labor. The contract is used as collateral for the loan.