(810 ILCS 5/3-207) (from Ch. 26, par. 3-207)
Sec. 3-207.
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.
(Source: P.A. 87-582; 87-895; 87-1135.)
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