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 endorsements 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 endorser whose endorsement is cancelled is discharged, and the discharge is effective against any subsequent holder.
(1959, P.A. 133, S. 3-207; P.A. 91-304, S. 26.)
History: P.A. 91-304 entirely replaced former provisions re the effectiveness of a negotiation subject to rescission with provisions re reacquisition of an instrument, a restatement of Sec. 42a-3-208, revised to 1991.
See Sec. 42a-3-202 for successor provisions to Sec. 42a-3-207, revised to 1991, re negotiation subject to rescission.
Cited. 208 C. 248.