PARRIS N. GLENDENING, Governor

Ch. 91

(2)      A DEFENSE OF THE OBLIGOR STATED IN ANOTHER SECTION OF THIS
TITLE OR A DEFENSE OF THE OBLIGOR THAT WOULD BE AVAILABLE IF THE PERSON
ENTITLED TO ENFORCE THE INSTRUMENT WERE ENFORCING A RIGHT TO PAYMENT
UNDER A SIMPLE CONTRACT; AND

(3)      A CLAIM IN RECOUPMENT OF THE OBLIGOR AGAINST THE
ORIGINAL PAYEE OF THE INSTRUMENT IF THE CLAIM AROSE FROM THE
TRANSACTION THAT GAVE RISE TO THE INSTRUMENT; BUT THE CLAIM OF THE
OBLIGOR MAY BE ASSERTED AGAINST A TRANSFEREE OF THE INSTRUMENT ONLY
TO REDUCE THE AMOUNT OWING ON THE INSTRUMENT AT THE TIME THE ACTION IS
BROUGHT.

(B)     THE RIGHT OF A HOLDER IN DUE COURSE TO ENFORCE THE OBLIGATION
OF A PARTY TO PAY THE INSTRUMENT IS SUBJECT TO DEFENSES OF THE OBLIGOR
STATED IN SUBSECTION (A)(1), BUT IS NOT SUBJECT TO DEFENSES OF THE OBLIGOR
STATED IN SUBSECTION (A)(2) OR CLAIMS IN RECOUPMENT STATED IN SUBSECTION
(A)(3) AGAINST A PERSON OTHER THAN THE HOLDER.

(C)     EXCEPT AS STATED IN SUBSECTION (D), IN AN ACTION TO ENFORCE THE
OBLIGATION OF A PARTY TO PAY THE INSTRUMENT, THE OBLIGOR MAY NOT
ASSERT AGAINST THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT A
DEFENSE CLAIM IN RECOUPMENT, OR CLAIM TO THE INSTRUMENT (§ 3-306) OF
ANOTHER PERSON, BUT THE OTHER PERSON'S CLAIM TO THE INSTRUMENT MAY BE
ASSERTED BY THE OBLIGOR IF THE OTHER PERSON IS JOINED IN THE ACTION AND
PERSONALLY ASSERTS THE CLAIM AGAINST THE PERSON ENTITLED TO ENFORCE
THE INSTRUMENT. AN OBLIGOR IS NOT OBLIGED TO PAY THE INSTRUMENT IF THE
PERSON SEEKING ENFORCEMENT OF THE INSTRUMENT DOES NOT HAVE RIGHTS OF
A HOLDER IN DUE COURSE AND THE OBLIGOR PROVES THAT THE INSTRUMENT IS A
LOST OR STOLEN INSTRUMENT.

(D)     IN AN ACTION TO ENFORCE THE OBLIGATION OF AN ACCOMMODATION
PARTY TO PAY AN INSTRUMENT, THE ACCOMMODATION PARTY MAY ASSERT
AGAINST THE PERSON ENTITLED TO ENFORCE THE INSTRUMENT ANY DEFENSE OR
CLAIM IN RECOUPMENT UNDER SUBSECTION (A) THAT THE ACCOMMODATED
PARTY COULD ASSERT AGAINST THE PERSON ENTITLED TO ENFORCE THE
INSTRUMENT, EXCEPT THE DEFENSES OF DISCHARGE IN INSOLVENCY
PROCEEDINGS, INFANCY, AND LACK OF LEGAL CAPACITY.

3-306.

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.

3-307.

(A) IN THIS SECTION:

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