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 Delaware Code
Article 3. Negotiable Instruments
Part 3. Enforcement of Instruments
§ 3-301. Person entitled to enforce instrument.
§ 3-302. Holder in due course.
§ 3-303. Value and consideration.
§ 3-305. Defenses and claims in recoupment.
§ 3-306. Claims to an instrument.
§ 3-307. Notice of breach of fiduciary duty.
§ 3-308. Proof of signatures and status as holder in due course.
§ 3-309. Enforcement of lost, destroyed, or stolen instrument.
§ 3-310. Effect of instrument on obligation for which taken.
§ 3-311. Accord and satisfaction by use of instrument.
§ 3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check.