MARVIN MANDEL, Governor

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to rescission, the declaration of a constructive trust or
any other remedy permitted by law.

3—208. Reacquisition.

Where an instrument is returned to or reacquired by
a prior party he may cancel any indorsement which is not
necessary to his title and reissue or further negotiate
the instrument, but any intervening party is discharged
as against the reacquiring party and subsequent holders
not in due course and if his indorsement has been
cancelled is discharged as against subsequent holders in
due course as well.

SUBTITLE 3. RIGHTS OF A HOLDER.

3—301. Rights of a holder.

The holder of an instrument whether or not he is the
owner may transfer or negotiate it and, except as
otherwise provided in § 3—603 on payment or satisfaction,
discharge it or enforce payment in his own name.

3—302. Holder in due course.

(1)   A holder in due course is a holder who takes
the instrument

(a)   For value; and

(b)   In good faith; and

(c)    Without notice that it is overdue or has
been dishonored or of any defense against or claim to it
on the part of any person.

(2)   A payee may be a holder in due course.

(3)   A holder does not become a holder in due course
of an instrument:

(a)    By purchase of it at judicial sale or by
taking it under legal process; or

(b)   By acquiring it in taking over an estate;
or

(c)   By purchasing it as part of a bulk
transaction not in regular course of business of the
transferor.

(4)   A purchaser of a limited interest can be a
holder in due course only to the extent of the interest
purchased.