2025 Session
Last amended: 1992 session
§ 336.3-306 — Claims to an Instrument
Plain-Language Summary
A person taking an instrument, other than a holder in due course, is subject to claims of ownership or possession by third parties.
336.3-306 1992 c 565 s 114
336.3-306 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.
History:
History: History:
1992 c 565 s 34
Practical Notes
If you are not a holder in due course, someone else may be able to claim the check or note belongs to them.