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. Code 1981, § 11-3-306 , enacted by Ga. L. 1996, p. 1306, § 3.
Structure Georgia Code
Article 3 - Negotiable Instruments
Part 3 - Enforcement of Instruments
§ 11-3-301. Person Entitled to Enforce Instrument
§ 11-3-302. Holder in Due Course
§ 11-3-303. Value and Consideration
§ 11-3-304. Overdue Instrument
§ 11-3-305. Defenses and Claims in Recoupment
§ 11-3-306. Claims to an Instrument
§ 11-3-307. Notice of Breach of Fiduciary Duty
§ 11-3-308. Proof of Signatures and Status as Holder in Due Course
§ 11-3-309. Enforcement of Lost, Destroyed, or Stolen Instrument
§ 11-3-310. Effect of Instrument on Obligation for Which Taken
§ 11-3-311. Accord and Satisfaction by Use of Instrument
§ 11-3-312. Lost, Destroyed, or Stolen Cashier’s Check, Teller’s Check, or Certified Check