Mich. Comp. Laws § 440.3306: Instrument; person subject to claim of property or possessory right.

Sec. 3306.

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.