§ 25-3-207. Reacquisition. - North Carolina Statutes

§25‑3‑207.  Reacquisition.

Reacquisition of an instrumentoccurs if it is transferred to a former holder by negotiation or otherwise. Aformer holder who reacquires the instrument may cancel indorsements made afterthe reacquirer first became a holder of the instrument. If the cancellationcauses the instrument to be payable to the reacquirer or to bearer, thereacquirer may negotiate the instrument. An indorser whose indorsement iscanceled is discharged, and the discharge is effective against any subsequentholder. (1889, c. 733, ss. 22, 48, 50, 121; Rev., ss. 2197,2199, 2271; C.S., ss. 3029, 3031, 3103; 1965, c. 700, s. 1; 1995, c. 232, s.1.)