§12A-3-207.

§12A-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.