(810 ILCS 5/3-306)
(from Ch. 26, par. 3-306)
Claims to an instrument.
A person taking an instrument,
other than a person having rights of a holder in due course, is subject to
a claim of a property or possessory right in the instrument or its
proceeds, including a claim to rescind a negotiation and to recover the
instrument or its proceeds. A person having rights of a holder in due
course takes free of the claim to the instrument.
(Source: P.A. 87-582.)