A prior party who reacquires an instrument may reissue it or negotiate it further.

Question

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According to the principle of Negotiability, a prior party who reacquires an instrument may reissue it or negotiate it further. This means that if a party who previously held a negotiable instrument, such as a check or promissory note, receives it back, they have the right to transfer ownership to another party or reissue it to someone else.

A Prior Party Who Reacquires an Instrument May Reissue It