{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-3-305","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 3-305","heading":"Rights of a Holder in Due Course","body":"Section 3--305. Rights of a Holder in Due Course.\n  To the extent that a holder is a holder in due course he takes the\ninstrument free from\n  (1) all claims to it on the part of any person; and\n  (2) all defenses of any party to the instrument with whom the holder\nhas not dealt except\n       (a) infancy, to the extent that it is a defense to a simple\n           contract; and\n       (b) such other incapacity, or duress, or illegality of the\n           transaction, as renders the obligation of the party a\n           nullity; and\n       (c) such misrepresentation as has induced the party to sign the\n           instrument with neither knowledge nor reasonable opportunity\n           to obtain knowledge of its character or its essential terms;\n           and\n       (d) discharge in insolvency proceedings; and\n       (e) any other discharge of which the holder has notice when he\n           takes the instrument.","path":["Uniform Commercial Code Law","Article 3. Commercial Paper","Part 3. Rights of a Holder"],"source_url":"https://legislation.nysenate.gov/api/3/laws/UCC/3-305","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"ba1afbe2ad977bb321a32127874955a169863f2a82d4b3c049c5cdaead4dcce6","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-3-304","next":"us-ny/n.y.-uniform-commercial-code-law-3-306"},"notice":"GroundRules: Original legal text. Not legal advice."}