Effective - 28 Aug 1992
400.3-306. 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.
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(L. 1963 p. 503 § 3-306, A.L. 1992 S.B. 448)