47-3207. Reacquisition


Reacquisition of an instrument occurs if it is transferred to a former holder, by
negotiation or otherwise. A former holder who reacquires the instrument may cancel
indorsements made after the reacquirer first became a holder of the instrument. If the
cancellation causes the instrument to be payable to the reacquirer or to bearer, the
reacquirer may negotiate the instrument. An indorser whose indorsement is canceled is
discharged, and the discharge is effective against any subsequent holder.