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 endorsements 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 endorser whose endorsement is canceled is discharged, and the discharge is effective against a subsequent holder.
Section: Previous 45.03.201 45.03.202 45.03.203 45.03.204 45.03.205 45.03.206 45.03.207 45.03.208 NextLast modified: November 15, 2016