84-3-207. Reacquisition. Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An endorser whose endorsement is canceled is discharged, and the discharge is effective against any subsequent holder.
History: L. 1991, ch. 296, § 26; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text. It is derived from and substantially similar to the former 84-3-208. Historical case and statutory references may be obtained from the 1965 or 1983 bound Volume 7 of the Kansas Statutes Annotated. Where an instrument is reacquired, intervening indorsers are not discharged as against holders subsequent to the reacquiring holder unless their names are cancelled. This is a change from the former provision. They are not liable to the reacquiring holder, however, because 84-3-415 provides that indorsers are liable only to persons entitled to enforce the instrument or to subsequent indorsers. In accordance with the prior provisions, however, if intervening indorsers' names are cancelled, intervening indorsers are discharged as to all subsequent holders, including holders in due course who will be on notice. 84-3-604(a) and 84-3-601(b).
Revisor's Note:
Former section 84-3-207 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.
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