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.
S.C. Code Ann. § 36-3-306
Claims to instrument
Known as the Uniform Commercial Code
The act spans §§ 36–36 (519 sections).
Applied in 2 court decisions — leading case Federal Deposit Ins. Corp. v. Moore (1978)
Most recently applied in Specialty Flooring Co. v. Palmetto Federal Savings Bank (May 1990)
1962 Code SECTION 10.3-306; 1966 (54) 2716; 2008 Act No. 204, SECTION 2, eff July 1, 2008.
Official source: South Carolina Legislature. Reproduced from public-domain South Carolina statutes; confirm against the official source for the current text. Not legal advice.