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 instrument
S.C. Code Ann. § 36-3-306, under Title 36, Chapter 3.
S.C. Code Ann. § 36-3-306