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.
Claims to an instrument
R.I. Gen. Laws § 6A-3-306., under Chapter 6A-3 Negotiable Instruments.
R.I. Gen. Laws § 6A-3-306.