Sec. 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.
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 3 - Negotiable Instruments
Subchapter C. Enforcement of Instruments
Section 3.301. Person Entitled to Enforce Instrument
Section 3.302. Holder in Due Course
Section 3.303. Value and Consideration
Section 3.304. Overdue Instrument
Section 3.305. Defenses and Claims in Recoupment
Section 3.306. Claims to an Instrument
Section 3.307. Notice of Breach of Fiduciary Duty
Section 3.308. Proof of Signatures and Status as Holder in Due Course
Section 3.309. Enforcement of Lost, Destroyed, or Stolen Instrument
Section 3.310. Effect of Instrument on Obligation for Which Taken
Section 3.311. Accord and Satisfaction by Use of Instrument
Section 3.312. Lost, Destroyed, or Stolen Cashier's Check, Teller's Check, or Certified Check