Cite as: 80 CNCA § 3-207

Reacquisition

Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel indorsements made after the reacquirer first became a holder of the instrument If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument An indorser whose indorsement is canceled is discharged, and the discharge is effective against any subsequent holder.

Historical Data

LA 26–03, eff. October 2, 2003.