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.
Cal. Com. Code § 3306
Enforcement of Instruments
Known as the Uniform Commercial Code
The act spans §§ 1101–12107 (623 sections).
Repealed and added by Stats. 1992, Ch. 914, Sec. 6
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.