Commercial Code § 3306

CHAPTER 3. Enforcement of Instruments

Current as of September 28, 2026Com. Code, § 3306Official source ↗

Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.

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.