§ 41-03-26 — (3-207) Reacquisition

Reacquisition of an instrument occurs if it is transferred, by negotiation or otherwise, to a
former holder. A former holder that 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 later holder.