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.
D.C. Code § 28:3-306
Claims to an instrument
Known as the Uniform Commercial Code
The act spans §§ 28–28 (639 sections).
Dec. 30, 1963, 77 Stat. 681, Pub
Official source: D.C. Law Library (Council of the District of Columbia). Reproduced from public-domain District of Columbia statutes; confirm against the official source for the current text. Not legal advice.