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Lost Candy Bar

(Lost Note Affidavits) Uniform Commercial Code
3309.ENFORCEMENTOFLOST,DESTROYED,ORSTOLENINSTRUMENT. (a)Apersonnotinpossessionofaninstrumentisentitledtoenforcetheinstrumentif: (1)thepersonseekingtoenforcetheinstrument (A)wasentitledtoenforceittheinstrumentwhenlossofpossessionoccurred,or (B)hasdirectlyorindirectlyacquiredownershipoftheinstrumentfromapersonwhowasentitledtoenforcetheinstrumentwhenlossof possessionoccurred; (2)thelossofpossessionwasnottheresultofatransferbythepersonoralawfulseizure;and (3)thepersoncannotreasonablyobtainpossessionoftheinstrumentbecausetheinstrumentwasdestroyed,itswhereaboutscannotbe determined,oritisinthewrongfulpossessionofanunknownpersonorapersonthatcannotbefoundorisnotamenabletoserviceofprocess. (b)Apersonseekingenforcementofaninstrumentundersubsection(a)mustprovethetermsoftheinstrumentandtheperson'srightto enforcetheinstrument.Ifthatproofismade,Section3308appliestothecaseasifthepersonseekingenforcementhadproducedthe instrument.Thecourtmaynotenterjudgmentinfavorofthepersonseekingenforcementunlessitfindsthatthepersonrequiredtopaythe instrumentisadequatelyprotectedagainstlossthatmightoccurbyreasonofaclaimbyanotherpersontoenforcetheinstrument.Adequate protectionmaybeprovidedbyanyreasonablemeans. 3604.DISCHARGEBYCANCELLATIONORRENUNCIATION. (a)Apersonentitledtoenforceaninstrument,withorwithoutconsideration,maydischargetheobligationofapartytopaytheinstrument(i) byanintentionalvoluntaryact,suchassurrenderoftheinstrumenttotheparty,destruction,mutilation,orcancellationoftheinstrument, cancellationorstrikingoutoftheparty'ssignature,ortheadditionofwordstotheinstrumentindicatingdischarge,or(ii)byagreeingnottosue orotherwiserenouncingrightsagainstthepartybyasignedrecord. (b)Cancellationorstrikingoutofanindorsementpursuanttosubsection(a)doesnotaffectthestatusandrightsofapartyderivedfromthe indorsement. (c)Asusedinthissection,"signed,"withrespecttoarecordthatisnotawriting,includestheattachmenttoorlogicalassociationwiththe recordofanelectronicsymbol,sound,orprocesstoorwiththerecordwiththepresentintenttoadoptoraccepttherecord.

Scenario1 ThesellertakesalltheslipsjustbeforeChristmasandenforcestheslipsandcollectsadollarbill fromallthebuyersthatsignedslipsandbuysnewcandybardisplay.Slipscanbeeither negotiableornonnegotiable. Scenario2 Thesellertakestheslipsandbundlesa100ofthemtogetherandsellstheseslipstothebank. Bankspaysthesellerwhothenhasenoughmoneytobuyanewcandybardisplaycasesohe cansellmorecandybars.TheslipsarerequiredtobenegotiableperUCC. Scenario3 (EntertheworldofemergingtechnologyPrimaryMarketBookEntry) (LegalAuthoritygrantedbytheEsignActandUETAlaws)False (TheUniformCommercialCodegovernsnegotiableinstruments) Sellertakesalltheslipsandscanstheslipsintoagraphicimageandentersallthedataintoa spreadsheetandsavesallthisnewlycreatedelectronicdataontoaCDROM.Sellerthensells thisCDROMtothebank.Thesellerdoesntwantalltheoldslipssittinginhistillashehasno

roomsohetakesthemoutbackanddestroysthem.(3604.DISCHARGEBYCANCELLATIONOR
RENUNCIATION.(a)Apersonentitledtoenforceaninstrument,withorwithoutconsideration,maydischargethe obligationofapartytopaytheinstrument(i)byanintentionalvoluntaryact,suchassurrenderoftheinstrument totheparty,destruction)Itisofnodifferencetothesellerwhetherthepaperexistsornotforhe

hasbeenpaid.WherearetheCandyCopswhenyouneedthem? ThebanksellsthisCDROMtoBiggieBank.BiggieBankwantstoenforcetheslipsandcollects hisdollarbillbutsellersaysprovetomeIoweyouadollarbill.BiggieBankthenhasaVice Presidentsignanaffidavitbecausehistitlesoundsimpressive.Tellerthenprintsoutthegraphic imageoftheslipandattachestotheaffidavitandsubmitstothecourtsasproofsobiggieBank canhaveanewreplacementslip.BiggieBankreliesupontheUCCtosupporttheenforcement action.

(3309.ENFORCEMENTOFLOST,DESTROYED,ORSTOLENINSTRUMENT. (3)thepersoncannotreasonablyobtainpossessionoftheinstrumentbecausetheinstrumentwasdestroyed,its whereaboutscannotbedetermined,oritisinthewrongfulpossessionofanunknownpersonorapersonthat cannotbefoundorisnotamenabletoserviceofprocess. (b)Apersonseekingenforcementofaninstrumentundersubsection(a)mustprovethetermsoftheinstrument andtheperson'srighttoenforcetheinstrument.Ifthatproofismade,Section3308appliestothecaseasifthe personseekingenforcementhadproducedtheinstrument.Thecourtmaynotenterjudgmentinfavorofthe personseekingenforcementunlessitfindsthatthepersonrequiredtopaytheinstrumentisadequatelyprotected againstlossthatmightoccurbyreasonofaclaimbyanotherpersontoenforcetheinstrument.Adequate protectionmaybeprovidedbyanyreasonablemeans.3308. PROOFOFSIGNATURESANDSTATUSASHOLDERINDUECOURSE.(a)Inanactionwithrespecttoaninstrument, theauthenticityof,andauthoritytomake,eachsignatureontheinstrumentisadmittedunlessspecificallydenied inthepleadings.Ifthevalidityofasignatureisdeniedinthepleadings,theburdenofestablishingvalidityisonthe personclaimingvalidity,butthesignatureispresumedtobeauthenticandauthorizedunlesstheactionisto enforcetheliabilityofthepurportedsignerandthesignerisdeadorincompetentatthetimeoftrialoftheissue ofvalidityofthesignature.Ifanactiontoenforcetheinstrumentisbroughtagainstapersonastheundisclosed principalofapersonwhosignedtheinstrumentasapartytotheinstrument,theplaintiffhastheburdenof establishingthatthedefendantisliableontheinstrumentasarepresentedpersonunderSection3402(a). (b)Ifthevalidityofsignaturesisadmittedorprovedandthereiscompliancewithsubsection(a),aplaintiff producingtheinstrumentisentitledtopaymentiftheplaintiffprovesentitlementtoenforcetheinstrumentunder Section3301,unlessthedefendantprovesadefenseorclaiminrecoupment.Ifadefenseorclaiminrecoupment isproved,therighttopaymentoftheplaintiffissubjecttothedefenseorclaim,excepttotheextenttheplaintiff provesthattheplaintiffhasrightsofaholderinduecoursewhicharenotsubjecttothedefenseorclaim.) BiggieBankhasnorighttoenforcetheslipandgocollectthedollarbillbecausethesellerintentionaland voluntarilydestroyedtheslipwhichrenderedtheslipnullandvoid.