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.
Tenn. Code Ann. § 47-3-306
Claims to an instrument
Known as the Uniform Commercial Code
The act spans §§ 47-1-101–47-9-809 (578 sections).
Applied in 1 court decision — leading case Starnes Family Office, LLC v. McCullar (2011)
Most recently applied in Starnes Family Office, LLC v. McCullar (January 2011)
Acts 1995, ch. 397, § 2.
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.