8.3A-306 - A-306. Claims to an instrument.

§ 8.3A-306. Claims to an instrument.

A person taking an instrument, other than a person having rights of a holderin due course, is subject to a claim of a property or possessory right in theinstrument or its proceeds, including a claim to rescind a negotiation and torecover the instrument or its proceeds. A person having rights of a holder indue course takes free of the claim to the instrument.

(Code 1950, §§ 6-367, 6-368, 6-380, 6-409 through 6-411; 1964, c. 219, §§8.3-305, 8.3-306; 1992, c. 693.)