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.
(Code 1981, §11-3-306, enacted by Ga. L. 1996, p. 1306, § 3.)
RESEARCH REFERENCES
U.L.A.
- Uniform Commercial Code (U.L.A.) § 3-306.