41-03-32. (3-306) Claims to an instrument.
67 words·~1 min read·
/nd/title-41/chapter-41-03-negotiable-instruments/41-03-32·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.