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.
[ 1993 c 229 s 34; 1965 ex.s. c 157 s 3-306. Cf. former RCW sections: (i) RCW 62.01.016; 1955 c 35 s 62.01.016; prior: 1899 c 149 s 16; RRS s 3407. (ii) RCW 62.01.028; 1955 c 35 s 62.01.028; prior: 1899 c 149 s 28; RRS s 3419. (iii) RCW 62.01.058; 1955 c 35 s 62.01.058; prior: 1899 c 149 s 58; RRS s 3449. (iv) RCW 62.01.059; 1955 c 35 s 62.01.059; prior: 1899 c 149 s 59; RRS s 3450.]