47-3308. Proof of signatures and status as
holder in due course
A. In an action with respect to an instrument, the authenticity of, and authority
to make, each signature on the instrument is admitted unless specifically denied in the
pleadings. If the validity of a signature is denied in the pleadings, the burden of
establishing validity is on the person claiming validity, but the signature is presumed
to be authentic and authorized unless the action is to enforce the liability of the
purported signer and the signer is dead or incompetent at the time of trial of the issue
of validity of the signature. If an action to enforce the instrument is brought against
a person as the undisclosed principal of a person who signed the instrument as a party to
the instrument, the plaintiff has the burden of establishing that the defendant is liable
on the instrument as a represented person under section 47-3402, subsection A.
B. If the validity of signatures is admitted or proved and there is compliance with
subsection A of this section, a plaintiff producing the instrument is entitled to payment
if the plaintiff proves entitlement to enforce the instrument under section 47-3301,
unless the defendant proves a defense or claim in recoupment. If a defense or claim in
recoupment is proved, the right to payment of the plaintiff is subject to the defense or
claim, except to the extent the plaintiff proves that the plaintiff has rights of a
holder in due course which are not subject to the defense or claim.
|