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The Vermont Statutes Online
Title
09A
:
Uniform Commercial Code
Chapter
003
:
Commercial Paper
§
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
indorsements 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 indorser whose
indorsement is cancelled is discharged, and the discharge is effective against
any subsequent holder. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1,
1995.)