2011 Connecticut Code
Title 42a Uniform Commercial Code
Article 3 Negotiable Instruments
Sec. 42a-3-306. Claims to an instrument.

      Sec. 42a-3-306. Claims to an instrument. 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.

      (1959, P.A. 133, S. 3-306; P.A. 91-304, S. 32.)

      History: P.A. 91-304 revised former Subdiv. (a) re the claims to an instrument which a person not having the rights of a holder in due course is subject to and deleted former Subdivs. (b), (c) and (d) re the defenses which a person not having the rights of a holder in due course is subject to.

      See Sec. 42a-3-305(a)(2) for successor provisions to Sec. 42a-3-306(b), revised to 1991, re defenses available in an action on a simple contract.

      See Secs. 42a-3-105(b), 42a-3-303(b) and 42a-3-305(a)(2) for successor provisions to Sec. 42a-3-306(c), revised to 1991, re defenses of want or failure of consideration, nonperformance of any condition precedent, nondelivery or delivery for a special purpose.

      See Sec. 42a-3-305(c) for successor provisions to Sec. 42a-3-306(d), revised to 1991, re defense that the instrument was acquired by theft.

      Waiver of defense clause in consumer sales contract void as opposed to policy of this section. 158 C. 543. Cited. 207 C. 483. Cited. 217 C. 205. Cited. 240 C. 10.

      Cited. 33 CS 641.

      Former Subdiv. (d):

      Cited. 205 C. 604.