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. Code 1981, § 11-3-306, enacted by Ga. L. 1996, p. 1306, § 3.
Claims to an instrument
O.C.G.A. § 11-3-306 — under Commercial Code.
O.C.G.A. § 11-3-306