{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-3-305","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-3-305","heading":"Defenses and Claims in Recoupment","body":"DEFENSES AND CLAIMS IN RECOUPMENT\n\n(a) Except as otherwise provided in this section, the right to\n\nenforce the obligation of a party to pay an instrument is subject to\n\nthe following:\n\n(1) a defense of the obligor based on (i) infancy of the\n\nobligor to the extent it is a defense to a simple\n\ncontract, (ii) duress, lack of legal capacity, or\n\nillegality of the transaction which, under other law,\n\nnullifies the obligation of the obligor, (iii) fraud\n\nthat induced the obligor to sign the instrument with\n\nneither knowledge nor reasonable opportunity to learn\n\nof its character or its essential terms, or (iv)\n\ndischarge of the obligor in insolvency proceedings;\n\n(2) a defense of the obligor stated in another section of\n\nthis article or a defense of the obligor that would be\n\navailable if the person entitled to enforce the\n\ninstrument were enforcing a right to payment under a\n\nsimple contract; and\n\n(3) a claim in recoupment of the obligor against the\n\noriginal payee of the instrument if the claim arose\n\nfrom the transaction that gave rise to the instrument;\n\nbut the claim of the obligor may be asserted against a\n\ntransferee of the instrument only to reduce the amount\n\nowing on the instrument at the time the action is\n\nbrought.\n\n(b) The right of a holder in due course to enforce the\n\nobligation of a party to pay the instrument is subject to defenses\n\nof the obligor stated in paragraph (1) of subsection (a) of this\n\nsection, but is not subject to defenses of the obligor stated in\n\nparagraph (2) of subsection (a) of this section or claims in\n\nrecoupment stated in paragraph (3) of subsection (a) of this section\n\nagainst a person other than the holder.\n\n(c) Except as stated in subsection (d) of this section, in an\n\naction to enforce the obligation of a party to pay the instrument,\n\nthe obligor may not assert against the person entitled to enforce\n\nthe instrument a defense, claim in recoupment, or claim to the\n\ninstrument (Section 3-306 of this title) of another person, but the\n\nother person's claim to the instrument may be asserted by the\n\nobligor if the other person is joined in the action and personally\n\nasserts the claim against the person entitled to enforce the\n\ninstrument. An obligor is not obliged to pay the instrument if the\n\nperson seeking enforcement of the instrument does not have rights of\n\na holder in due course and the obligor proves that the instrument is\n\na lost or stolen instrument.\n\n(d) In an action to enforce the obligation of an accommodation\n\nparty to pay an instrument, the accommodation party may assert\n\nagainst the person entitled to enforce the instrument any defense or\n\nclaim in recoupment under subsection (a) of this section that the\n\naccommodated party could assert against the person entitled to\n\nenforce the instrument, except the defenses of discharge in\n\ninsolvency proceedings, infancy, and lack of legal capacity.\n\n(e) This section is subject to law other than this article that\n\nestablishes a different rule for consumer transactions.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"15f506113c2d99a2bc975c05485ce0d4f49012262f6b9e7cebf94c2a126e2254","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-3-304","next":"us-ok/okla.-stat.-tit.-12a-12a-3-306"},"notice":"GroundRules: Original legal text. Not legal advice."}