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Uniform Commercial Code 3-603 B 2010-2011 Ed
Uniform Commercial Code 3-603 B 2010-2011 Ed
Art. 3
however, prevent a person from becoming or acquiring the rights of, a holder in due course.
See Section 3-302(b). Thus, such a person does not become subject to other defenses described
in Section 3-305(a)(2), claims in recoupment described in Section 3-305(a)(3), or claims to
the instrument under Section 3-306. A transferee can prevent payment to the transferor from
discharging the obligation on the note by assuring that each person who is obligated on the
note receives adequate notification pursuant to subsection (b) prior to making a payment.
Amendment approved by the Permanent Editorial Board for Uniform Commercial Code
October 31, 2003.