Okla. Stat. tit. 12A, § 12A-3-305: Defenses and Claims in Recoupment

DEFENSES AND CLAIMS IN RECOUPMENT

(a) Except as otherwise provided in this section, the right to

enforce the obligation of a party to pay an instrument is subject to

the following:

(1) a defense of the obligor based on (i) infancy of the

obligor to the extent it is a defense to a simple

contract, (ii) duress, lack of legal capacity, or

illegality of the transaction which, under other law,

nullifies the obligation of the obligor, (iii) fraud

that induced the obligor to sign the instrument with

neither knowledge nor reasonable opportunity to learn

of its character or its essential terms, or (iv)

discharge of the obligor in insolvency proceedings;

(2) a defense of the obligor stated in another section of

this article 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 paragraph (1) of subsection (a) of this

section, but is not subject to defenses of the obligor stated in

paragraph (2) of subsection (a) of this section or claims in

recoupment stated in paragraph (3) of subsection (a) of this section

against a person other than the holder.

(c) Except as stated in subsection (d) of this section, 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 (Section 3-306 of this title) 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) of this section 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.

(e) This section is subject to law other than this article that

establishes a different rule for consumer transactions.