Sec. 306. 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.
Ind. Code § 26-1-3.1-306
Claims to an instrument
Known as the Uniform Commercial Code
The act spans §§ 26-1-1-0.2 to 26-1-9.1-902 (630 sections).
Applied in 1 court decision — leading case AMERICAN SAVINGS, FSB v. Tokarski (2011)
Most recently applied in AMERICAN SAVINGS, FSB v. Tokarski (December 2011)
As added by P.L.222-1993, SEC.5.
Official source: Indiana General Assembly. Reproduced from public-domain Indiana statutes; confirm against the official source for the current text. Not legal advice.