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.
Structure Code of Alabama
Article 3 - Negotiable Instruments.
Part 3 - Enforcement of Instruments.
Section 7-3-301 - Person Entitled to Enforce Instrument.
Section 7-3-302 - Holder in Due Course.
Section 7-3-303 - Value and Consideration.
Section 7-3-306 - Claims to an Instrument.
Section 7-3-304 - Overdue Instrument.
Section 7-3-305 - Defenses and Claims in Recoupment.
Section 7-3-307 - Notice of Breach of Fiduciary Duty.
Section 7-3-308 - Proof of Signatures and Status as Holder in Due Course.
Section 7-3-309 - Enforcement of Lost, Destroyed, or Stolen Instrument.
Section 7-3-310 - Effect of Instrument on Obligation for Which Taken.
Section 7-3-311 - Accord and Satisfaction by Use of Instrument.
Section 7-3-312 - Lost, Destroyed, or Stolen Cashier's Check, Teller's Check, or Certified Check.