N.Y. Uniform Commercial Code Law § 3-208: Reacquisition

Section 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.