California · Commercial Code

COM §3207: Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise.

What this law says, in plain English

Reacquisition of an instrument happens when it is transferred back to someone who previously held it, through negotiation or other means.

Read the full statutory text

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 canceled is discharged, and the discharge is effective against any subsequent holder.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.