Sec. 3306.
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: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 3 - Negotiable Instruments (440.3101...440.3805)
174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312)
Section 440.3301 - Instrument; Person Entitled to Enforce.
Section 440.3303 - Instrument Issued or Transferred for Value; Consideration.
Section 440.3304 - Instruments Payable on Demand or Payable at Definite Time as Overdue; Conditions.
Section 440.3306 - Instrument; Person Subject to Claim of Property or Possessory Right.
Section 440.3307 - Fiduciary Duty; Breach.
Section 440.3309 - Enforcement of Instrument in Which Loss of Possession Occurred.
Section 440.3311 - Discharge; Tender as Full Satisfaction of Claim.