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.
Tex. Bus. & Com. Code § 3.306
CLAIMS TO AN INSTRUMENT
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Applied in 7 court decisions — leading case Leavings v. Mills (2004)
Most recently applied in Victor Lissiak, Jr. v. S.W. Loan OO, L.P. (June 2016)
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.