§490:3-207  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. [L 1991, c 118, pt of §1]