The above rule does not apply in the case of remote parties. A bona fide purchaser for value may hold a bill or note free from a defense which might have been set up against a prior party.

To be a bona fide holder for value, a person must either have given a valuable consideration for the bill or note and taken it without notice of facts which impeach its validity between antecedent parties, or have received the instrument from a bona fide holder. After a bill or note has once passed in to the hands of a bona fide holder, it will not become invalidated upon a subsequent transfer merely because the new holder did not give a valuable consideration to such bona fide holder, or had knowledge of facts which would have been a defense between the parties antecedent to the bona fide holder.