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Texas Business & Commerce Code

§ 3.305 — DEFENSES AND CLAIMS IN RECOUPMENT

BC § 3.305Title 1. UNIFORM COMMERCIAL CODE · Ch. 3. NEGOTIABLE INSTRUMENTS · Art. C. ENFORCEMENT OF INSTRUMENTS

Statute text

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(a)Except as otherwise provided in this section, the right to enforce the obligation of a party to pay an instrument is subject to the following:
(1)a defense of the obligor based on:
(A)infancy of the obligor to the extent it is a defense to a simple contract;
(B)duress, lack of legal capacity, or illegality of the transaction that, under other law, nullifies the obligation of the obligor;
(C)fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms; or
(D)discharge of the obligor in insolvency proceedings;

Legislative history

Acts 2005, 79th Leg., Ch. 95 (S.B. 1563), Sec. 5, eff. September 1, 2005.

Source: Texas Business & Commerce Code § 3.305 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.