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Enforcement of Lost, Stolen, or Destroyed Instruments

Learn about the rules governing whether someone can enforce a lost, stolen, or destroyed instrument.


Normally, to enforce a negotiable instrument under Article 3, one must have physical possession of the instrument. However, in limited instances, Article 3 sets the possession requirement aside so that one not in possession of an instrument may nonetheless demand payment from an obligated party.

The most significant exception to the possession requirement involves lost, stolen, or destroyed instruments, which we’ll discuss in this lesson.  

I. UCC § 3-309 (1990 and 2002)

Before we dive in,...