§490:3-306 - Claims to an instrument.
§490:3-306 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. [L 1991, c 118, pt of §1]