HB131: relative to enforcement of negotiable instruments under Article 3 of the Uniform Commercial Code.

CHAPTER 121

HB 131 - FINAL VERSION

2003 SESSION

03-0422

06/10

HOUSE BILL 131

AN ACT relative to enforcement of negotiable instruments under Article 3 of the Uniform Commercial Code.

SPONSORS: Rep. Spiess, Hills 47; Sen. Kenney, Dist 3

COMMITTEE: Commerce

ANALYSIS

This bill amends a provision of the Uniform Commercial Code relative to lost negotiable instruments. It addresses the manner in which a person or his or her successor in interest can enforce a negotiable instrument when the original instrument has been lost.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0422

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to enforcement of negotiable instruments under Article 3 of the Uniform Commercial Code.

Be it Enacted by the Senate and House of Representatives in General Court convened:

121:1 Negotiable Instruments; Enforcement of Lost, Destroyed, or Stolen Instrument. Amend RSA 382-A:3-309 to read as follows:

382-A:3-309 Enforcement of Lost, Destroyed, or Stolen Instrument.

(a) A person not in possession of an instrument is entitled to enforce the instrument if [(i) the person was in possession of the instrument and] (1) the person seeking to enforce the instrument (A) was entitled to enforce [it] the instrument when loss of possession occurred, [(ii)] or (B) has directly or indirectly acquired ownership of the instrument from a person who was entitled to enforce the instrument when loss of possession occurred; (2) the loss of possession was not the result of a transfer by the person or a lawful seizure[,]; and [(iii)] (3) the person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.

(b) A person seeking enforcement of an instrument under subsection (a) must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, Section 3-308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.

121:2 Effective Date. This act shall take effect January 1, 2004.

(Approved: June 12, 2003)

(Effective Date: January 1, 2004)