30-3-306. Claims to an instrument. 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: En. Sec. 3-306, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-306; amd. Sec. 119, Ch. 410, L. 1991.
Structure Montana Code Annotated
Chapter 3. Uniform Commercial Code Negotiable Instruments
30-3-301. Person entitled to enforce instrument
30-3-302. Holder in due course
30-3-303. Value and consideration
30-3-305. Defenses and claims in recoupment
30-3-306. Claims to an instrument
30-3-307. Proof of signatures and status as holder in due course
30-3-308. Notice of breach of fiduciary duty
30-3-309. Enforcement of lost, destroyed, or stolen instrument
30-3-310. Effect of instrument on obligation for which taken
30-3-311. Accord and satisfaction by use of instrument
30-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check