TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 3

UNIFORM COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS

PART 3.

ENFORCEMENT OF INSTRUMENTS

28-3-306.  Claims to an instrument. A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.

History:

[28-3-306, added 1993, ch. 288, sec. 2, p. 1035.]