Reacquisition (Banking) Law and Legal Definition
Pursuant to U.C.C. § 3-207, an instrument is reacquired when an instrument is transferred to a former holder, by negotiation or otherwise. The former holder who reacquires the instrument can cancel indorsement made after the reacquirer first became a holder of the instrument. A reacquirer can negotiate an instrument when cancellation causes the instrument to be payable to the reacquirer or to a bearer. An indorser whose indorsement is canceled is discharged by reacquisition. Such a discharge is effective against any subsequent holder.
Legal Definition list
Related Legal Terms
- Abstraction [Banking]
- Accommodation Maker(Banking)
- Account [Banks & Banking]
- Acting in Concert [Banks & Banking]
- Affiliate [Banks & Banking]
- Alternative Mortgage Transaction [Banks & Banking]
- Application for a Deposit Facility [Banks & Banking]
- Appropriate Federal Banking Agency
- Appropriate Federal Financial Supervisory Agency [Banks & Banking]
- Appropriate Financial Regulator [Banks & Banking]
