Tex. Bus. & Com. Code § 3.306
Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
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.
Tex. Bus. and Comm. Code § 3.306