§ 3-306 — Rights of One Not Holder in Due Course

Section 3--306. Rights of One Not Holder in Due Course.\n Unless he has the rights of a holder in due course any person takes\nthe instrument subject to\n (a) all valid claims to it on the part of any person; and\n (b) all defenses of any party which would be available in an action on\na simple contract; and\n (c) the defenses of want or failure of consideration, non-performance\nof any condition precedent, non-delivery, or delivery for a special\npurpose (Section 3--408); and\n (d) the defense that he or a person through whom he holds the\ninstrument acquired it by theft, or that payment or satisfaction to such\nholder would be inconsistent with the terms of a restrictive\nindorsement. The claim of any third person to the instrument is not\notherwise available as a defense to any party liable thereon unless the\nthird person himself defends the action for such party.\n