{"data":{"id":"us-nm/55-3-306","jurisdiction":"us-nm","citation":"55-3-306","heading":"Claims to an instrument.","body":"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.\nOFFICIAL COMMENTS\nUCC Official Comments © by ALI \u0026 the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.\nThis section expands on the reference to \"claims to\" the instrument mentioned in former Sections 3-305 [55-3-305 NMSA 1978] and 3-306 [55-3-306 NMSA 1978]. Claims covered by the section include not only claims to ownership but also any other claim of a property or possessory right. It includes the claim to a lien or the claim of a person in rightful possession of an instrument who was wrongfully deprived of possession. Also included is a claim based on Section 3-202(b) [55-3-202 NMSA 1978] or rescission of a negotiation of the instrument by the claimant. Claims to an instrument under Section 3-306 are different from claims in recoupment referred to in Section 3-305(a)(3). The rule of this section is similar to the rule of Article 30(2) of the Convention on International Bills of Exchange and International Promissory Notes.","path":["Chapter 55 - Uniform Commercial Code","ARTICLE 3 Negotiable Instruments"],"source_url":"https://nmonesource.com/nmos/nmsa-unanno/en/item/18558/index.do","current_through":"2024-04-27","vintage":"","retrieved_at":"2026-09-03T15:02:20Z","sha256":"3a7b096a9d7fe528e0a5276d5f83bc4c98881064f1395fe2d71b78e7722971ce","source_id":"us-nm","stale":false,"prev":"us-nm/55-3-305","next":"us-nm/55-3-307"},"notice":"GroundRules: Original legal text. Not legal advice."}