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.
(Code 1981, §11-3-207, enacted by Ga. L. 1996, p. 1306, § 3.)
RESEARCH REFERENCES8C Am. Jur. Pleading and Practice Forms, Duress and Undue Influence, § 1.
C.J.S.- 10 C.J.S., Bills and Notes, §§ 158, 244, 248.
U.L.A.- Uniform Commercial Code (U.L.A.) § 3-207.
PART 3 ENFORCEMENT OF INSTRUMENTS
JUDICIAL DECISIONS
Security agreements not within article's ambit.- Under Georgia law, security agreements are not negotiable instruments. Thus, security agreements do not fall within the ambit of this article, including the holder in due course provisions. Massey-Ferguson Credit Corp. v. Wiley, 655 F. Supp. 655 (M.D. Ga. 1987).