2025 Session
Last amended: 1992 session
§ 336.3-207 — Reacquisition
Plain-Language Summary
A reacquisition of an instrument by a prior holder discharges any intervening party's endorsement and liability.
336.3-207 1992 c 565 s 114
336.3-207 REACQUISITION.
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 canceled is discharged, and the discharge is effective against any subsequent holder.
History:
History: History:
1992 c 565 s 28
Practical Notes
If a check comes back to a previous holder, the endorsements in between are canceled.