N.Y. Uniform Commercial Code Law § 3-305 : Uniform Commercial Code — Commercial Paper — Rights of a Holder in Due Course

  • Date:

Current through 2016 New York Laws, Chapters 1 to 237

To the extent that a holder is a holder in due course he takes the instrument free from

(1) all claims to it on the part of any person; and
(2) all defenses of any party to the instrument with whom the holder has not dealt except
(a) infancy, to the extent that it is a defense to a simple contract; and
(b) such other incapacity, or duress, or illegality of the transaction, as renders the obligation of the party a nullity; and
(c) such misrepresentation as has induced the party to sign the instrument with neither knowledge nor reasonable opportunity to obtain knowledge of its character or its essential terms;

and

(d) discharge in insolvency proceedings; and
(e) any other discharge of which the holder has notice when he takes the instrument.
N.Y. U.c.c. Law § 3-305
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