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.
Ark. Code Ann. § 4-3-306
Claims to an instrument
Known as the Uniform Commercial Code
The act spans §§ 4–4 (597 sections).
Applied in 1 court decision — leading case Mobley v. Harmon (1991)
Most recently applied in Mobley v. Harmon (February 1991)
Acts 1991, No. 572, § 5.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.