Michigan Compiled Laws § 440.3306 Instrument; Person Subject To Claim Of Property Or Possessory Right.

440.3306 Instrument; person subject to claim of property or possessory right.

Sec. 3306.

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.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993

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Last modified: October 10, 2016