“Reacquisition of an instrument” occurs if it is transferred by negotiation or otherwise
to a former holder. A former holder who reacquires the instrument may cancel any indorsements made after
the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to
bearer, the reacquirer may negotiate the instrument. An indorser whose indorsement is canceled is discharged, and the discharge is effective
against any subsequent holder.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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