8.3A-308 - A-308. Proof of signatures and status as holder in due course. - Virginia Statutes

§ 8.3A-308. Proof of signatures and status as holder in due course.

(a) In an action with respect to an instrument, the authenticity of, andauthority to make, each signature on the instrument is admitted unlessspecifically denied in the pleadings. If the validity of a signature isdenied in the pleadings, the burden of establishing validity is on the personclaiming validity, but the signature is presumed to be authentic andauthorized unless the action is to enforce the liability of the purportedsigner and the signer is dead or incapacitated at the time of trial of theissue of validity of the signature. If an action to enforce the instrument isbrought against a person as the undisclosed principal of a person who signedthe instrument as a party to the instrument, the plaintiff has the burden ofestablishing that the defendant is liable on the instrument as a representedperson under § 8.3A-402 (a).

(b) If the validity of signatures is admitted or proved and there iscompliance with subsection (a), a plaintiff producing the instrument isentitled to payment if the plaintiff proves entitlement to enforce theinstrument under § 8.3A-301, unless the defendant proves a defense or claimin 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 theextent the plaintiff proves that the plaintiff has rights of a holder in duecourse which are not subject to the defense or claim.

(Code 1950, § 6-411; 1964, c. 219, § 8.3-307; 1992, c. 693; 1997, c. 801.)