Statutes > Arkansas Statutes > Title 4 - Business and Commercial Law > Subtitle 1 - Uniform Commercial Code > Chapter 3 - Negotiable Instruments > Part 3 - Enforcement of Instruments > § 4-3-306 - Claims to an instrument.

§ 4-3-306 - Claims to an instrument.

4-3-306. 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.