N.Y. Uniform Commercial Code Law Section 3-305
Rights of a Holder in Due Course

Section 3--305. Rights of a Holder in Due Course. To the extent that a holder is a holder in due course he takes the instrument free from (1) all claims to it on the part of any person; and

(2)

all defenses of any party to the instrument with whom the holder has not dealt except (a) infancy, to the extent that it is a defense to a simple contract; and

(b)

such other incapacity, or duress, or illegality of the transaction, as renders the obligation of the party a nullity; and

(c)

such misrepresentation as has induced the party to sign the instrument with neither knowledge nor reasonable opportunity to obtain knowledge of its character or its essential terms; and

(d)

discharge in insolvency proceedings; and

(e)

any other discharge of which the holder has notice when he takes the instrument.

Source: Section 3-305 — Rights of a Holder in Due Course, https://www.­nysenate.­gov/legislation/laws/UCC/3-305 (updated Sep. 22, 2014; accessed Jan. 3, 2026).

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Verified:
Jan. 3, 2026

Last modified:
Sep. 22, 2014

§ 3-305. Rights of a Holder in Due Course's source at nysenate​.gov

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