70A-3-308 - Proof of signatures and status as holder in due course. - Utah Statutes

70A-3-308. Proof of signatures and status as holder in due course.
(1) In an action with respect to an instrument, the authenticity of, and authority to make,each signature on the instrument is admitted unless specifically denied in the pleadings. If thevalidity of a signature is denied in the pleadings, the burden of establishing validity is on theperson claiming validity, but the signature is presumed to be authentic and authorized unless theaction is to enforce the liability of the purported signer and the signer is dead or incompetent atthe time of trial of the issue of validity of the signature. If an action to enforce the instrument isbrought against a person as the undisclosed principal of a person who signed the instrument as aparty to the instrument, the plaintiff has the burden of establishing that the defendant is liable onthe instrument as a represented person under Subsection 70A-3-402(1).
(2) If the validity of signatures is admitted or proved and there is compliance withSubsection (1), a plaintiff producing the instrument is entitled to payment if the plaintiff provesentitlement to enforce the instrument under Section 70A-3-301, unless the defendant proves adefense or claim in recoupment. If a defense or claim in recoupment is proved, the right topayment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff provesthat he has rights of a holder in due course which are not subject to the defense or claim.

Enacted by Chapter 237, 1993 General Session