{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-3-306","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 3-306","heading":"Rights of One Not Holder in Due Course","body":"Section 3--306. Rights of One Not Holder in Due Course.\n  Unless he has the rights of a holder in due course any person takes\nthe instrument subject to\n  (a) all valid claims to it on the part of any person; and\n  (b) all defenses of any party which would be available in an action on\na simple contract; and\n  (c) the defenses of want or failure of consideration, non-performance\nof any condition precedent, non-delivery, or delivery for a special\npurpose (Section 3--408); and\n  (d) the defense that he or a person through whom he holds the\ninstrument acquired it by theft, or that payment or satisfaction to such\nholder would be inconsistent with the terms of a restrictive\nindorsement. The claim of any third person to the instrument is not\notherwise available as a defense to any party liable thereon unless the\nthird person himself defends the action for such party.","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/3-306","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"5e19621d05718393352c9c409e6c54b371cca5dd855ee1cf283e902d49074c3b","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-3-305","next":"us-ny/n.y.-uniform-commercial-code-law-3-307"},"notice":"GroundRules: Original legal text. Not legal advice."}