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.
KRS 355.3-306
Claims to an instrument
Known as the Uniform Commercial Code
The act spans §§ 355–355 (686 sections).
Effective: January 1, 1997 History: Repealed and reenacted 1996 Ky
Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.