O.C.G.A. § 11-3-207 (2019)
Reacquisition
Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel indorsements 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 indorser whose indorsement is canceled is discharged, and the discharge is effective against any subsequent holder.
History
Code 1981, § 11-3-207, enacted by Ga. L. 1996, p. 1306, § 3.
Annotations
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory provisions, decisions under former Code 1933, §§ 109A-3208 and 109A-3-601(3) are included in the annotations for this Code section. Intent of section. - Former Code 1933, §§ 109A-3-208 and 109A-3-601(3) were intended to eliminate circuity in or-
der of responsibility of endorsers. Columbian Peanut Co. v. Frosteg, 472 F.2d 476, 1973 U.S. App. LEXIS 11994 (5th Cir.), cert. denied, 414 U.S. 824, 94 S. Ct. 126, 38 L. Ed. 2d 57 (1973) (decided under former Code 1933, §§ 109A-3-208 and 109A-3-601(3)).
RESEARCH REFERENCES Am. Jur. Pleading and Practice Forms. 8C Am. Jur. Pleading and Practice Forms, Duress and Undue Influence, § 1. C.J.S. 10 C.J.S., Bills and Notes, §§ 158, 244, 248.
U.L.A. Uniform Commercial Code (U.L.A.) § 3207.
PART 3 ENFORCEMENT OF INSTRUMENTS JUDICIAL DECISIONS Security agreements not within article’s ambit. - Under Georgia law, security agreements are not negotiable instruments. Thus, security agreements do not fall within the ambit of this article,
including the holder in due course provisions. Massey-Ferguson Credit Corp. v. Wiley, 655 F. Supp. 655, 1987 U.S. Dist. LEXIS 2149 (M.D. Ga. 1987).