N.Y. Uniform Commercial Code 3-307 – Burden of Establishing Signatures, Defenses and Due Course
Section 3–307. Burden of Establishing Signatures, Defenses and Due
Terms Used In N.Y. Uniform Commercial Code 3-307
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Pleadings: Written statements of the parties in a civil case of their positions. In the federal courts, the principal pleadings are the complaint and the answer.
Course.
(1) Unless specifically denied in the pleadings each signature on an instrument is admitted. When the effectiveness of a signature is put in issue
(a) the burden of establishing it is on the party claiming under
the signature; but
(b) the signature is presumed to be genuine or authorized except
where the action is to enforce the obligation of a purported
signer who has died or become incompetent before proof is
required.
(2) When signatures are admitted or established, production of the instrument entitles a holder to recover on it unless the defendant establishes a defense.
(3) After it is shown that a defense exists a person claiming the rights of a holder in due course has the burden of establishing that he or some person under whom he claims is in all respects a holder in due course.