A person who is not the owner of an instrument or a person in wrongful possession of an instrument may be entitled to enforce it.

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), a person who is not the owner of an instrument but has obtained possession of the instrument lawfully or by mistake, fraud, or theft may be entitled to enforce the instrument as long as they meet certain requirements outlined in the UCC. Additionally, a person who is in wrongful possession of an instrument (i.e., obtained it through theft or fraud) may also be able to enforce it if they are a holder in due course and meet the other requirements under the UCC.

A Person Who Is Not the Owner of an Instrument