53. (1) A holder who derives his title through a holder in due course, and who is not himself a party to any fraud or illegality affecting the negotiable instrument, has all the rights therein of that holder in due course as regards the acceptor and all parties to the instrument prior to that holder. (2) Where the title of the holder is defective,- (a) if he negotiates the instrument to a holder in due course, that holder obtains a good and complete title to the instrument; and (b) if he obtains payment of the instrument, the person who pays him in due course gets a valid discharge for the instrument.