reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A529 - Lessor's action for the rent

47-2A529.
Lessor's action for the rent
A. After default by the lessee under the lease contract of the type described in section 47-2A523,  subsection A or subsection C,  paragraph 1 or,  if agreed,  after other default by the lessee,  if the lessor complies with subsection B of this section,  the lessor may recover from the lessee as damages:
1. For goods accepted by the lessee and not repossessed by or tendered to the lessor,  and for conforming goods lost or damaged within a commercially reasonable time after risk of loss passes to the lessee (section 47-2A219),  accrued and unpaid rent as of the date of entry of judgment in favor of the lessor,  the present value as of the same date of the rent for the then remaining lease term of the lease agreement,  and any incidental damages allowed under section 47-2A530,  less expenses saved in consequence of the lessee's default;  and
2. For goods identified to the lease contract if the lessor is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that effort will be unavailing,  accrued and unpaid rent as of the date of entry of judgment in favor of the lessor,  the present value as of the same date of the rent for the then remaining lease term of the lease agreement,  and any incidental damages allowed under section 47-2A530,  less expenses saved in consequence of the lessee's default.
B. Except as provided in subsection C of this section,  the lessor shall hold for the lessee for the remaining lease term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
C. The lessor may dispose of the goods at any time before collection of the judgment for damages obtained pursuant to subsection A of this section. If the disposition is before the end of the remaining lease term of the lease agreement,  the lessor's recovery against the lessee for damages is governed by section 47-2A527 or 47-2A528,  and the lessor will cause an appropriate credit to be provided against a judgment for damages to the extent that the amount of the judgment exceeds the recovery available pursuant to section 47-2A527 or 47-2A528.
D. Payment of the judgment for damages obtained pursuant to subsection A of this section entitles the lessee to the use and possession of the goods not then disposed of for the remaining lease term of and in accordance with the lease agreement.
E. After default by the lessee under the lease contract of the type described in section 47-2A523,  subsection A or subsection C,  paragraph 1 or,  if agreed,  after other default by the lessee,  a lessor who is held not entitled to rent under this section must nevertheless be awarded damages for nonacceptance under section 47-2A527 or 47-2A528.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A530 - Lessor's incidental damages

47-2A530.
Lessor's incidental damages
Incidental damages to an aggrieved lessor include any commercially reasonable charges,  expenses or commissions incurred in stopping delivery,  in the transportation,  care and custody of goods after the lessee's default,  in connection with return or disposition of the goods or otherwise resulting from the default.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A531 - Standing to sue third parties for injury to goods

47-2A531.
Standing to sue third parties for injury to goods
A. If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract the lessor has a right of action against the third party,  and the lessee also has a right of action against the third party if the lessee:
1. Has a security interest in the goods;
2. Has an insurable interest in the goods;  or
3. Bears the risk of loss under the lease contract or has since the injury assumed that risk as against the lessor and the goods have been converted or destroyed.
B. If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery,  his suit or settlement,  subject to his own interest,  is as a fiduciary for the other party to the lease contract.
C. Either party with the consent of the other may sue for the benefit of whom it may concern.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A532 - Lessor's rights to residual interest

47-2A532.
Lessor's rights to residual interest
In addition to any other recovery permitted by this chapter or other law,  the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3102 - Subject matter

47-3102.
Subject matter
A. This chapter applies to negotiable instruments. It does not apply to money,  to payment orders governed by chapter 4A of this title or to securities governed by chapter 8 of this title.
B. If there is conflict between this chapter and chapter 4 or 9 of this title,  chapters 4 and 9 of this title govern.
C. Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3104 - Negotiable instrument

47-3104.
Negotiable instrument
A. Except as provided in subsections C and D,  " negotiable instrument"  means an unconditional promise or order to pay a fixed amount of money,  with or without interest or other charges described in the promise or order,  if it:
1. Is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
2. Is payable on demand or at a definite time;  and
3. Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money,  but the promise or order may contain:
(a) An undertaking or power to give,  maintain or protect collateral to secure payment;
(b) An authorization or power to the holder to confess judgment or realize on or dispose of collateral;  or
(c) A waiver of the benefit of any law intended for the advantage or protection of an obligor.
B. " Instrument"  means a negotiable instrument.
C. An order that meets all of the requirements of subsection A,  except paragraph 1,  and otherwise falls within the definition of " check"  in subsection F is a negotiable instrument and a check.
D. A promise or order other than a check is not an instrument if,  at the time it is issued or first comes into possession of a holder,  it contains a conspicuous statement,  however expressed,  to the effect that the promise or order is not negotiable or is not an instrument governed by this chapter.
E. An instrument is a " note"  if it is a promise and is a " draft"  if it is an order. If an instrument falls within the definition of both " note"  and " draft" ,  a person entitled to enforce the instrument may treat it as either.
F. " Check"  means:
1. A draft,  other than a documentary draft,  payable on demand and drawn on a bank;  or
2. A cashier's check or teller's check.
An instrument may be a check even though it is described on its face by another term,  such as " money order" .
G. " Cashier's check"  means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
H. " Teller's check"  means a draft drawn by a bank:
1. On another bank;  or
2. Payable at or through a bank.
I. " Traveler's check"  means an instrument that:
1. Is payable on demand;
2. Is drawn on or payable at or through a bank;
3. Is designated by the term " traveler's check"  or by a substantially similar term;  and
4. Requires,  as a condition to payment,  a countersignature by a person whose specimen signature appears on the instrument.
J. " Certificate of deposit"  means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3105 - Issue of instrument

47-3105.
Issue of instrument
A. " Issue"  means the first delivery of an instrument by the maker or drawer,  whether to a holder or nonholder,  for the purpose of giving rights on the instrument to any person.
B. An unissued instrument,  or an unissued incomplete instrument that is completed,  is binding on the maker or drawer,  but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer,  but failure of the condition or special purpose to be fulfilled is a defense.
C. " Issuer"  applies to issued and unissued instruments and means a maker or drawer of an instrument.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3106 - Unconditional promise or order

47-3106.
Unconditional promise or order
A. Except as provided in this section,  for the purposes of section 47-3104,  subsection A,  a promise or order is unconditional unless it states:
1. An express condition to payment;
2. That the promise or order is subject to or governed by another writing;  or
3. That rights or obligations with respect to the promise or order are stated in another writing.
A reference to another writing does not of itself make the promise or order conditional.
B. A promise or order is not made conditional:
1. By a reference to another writing for a statement of rights with respect to collateral,  prepayment or acceleration;  or
2. Because payment is limited to resort to a particular fund or source.
C. If a promise or order requires,  as a condition to payment,  a countersignature by a person whose specimen signature appears on the promise or order,  the condition does not make the promise or order conditional for the purposes of section 47-3104,  subsection A. If the person whose specimen signature appears on an instrument fails to countersign the instrument,  the failure to countersign is a defense to the obligation of the issuer,  but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
D. If a promise or order at the time it is issued or first comes into possession of a holder contains a statement,  required by applicable statutory or administrative law,  to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee,  the promise or order is not thereby made conditional for the purposes of section 47-3104,  subsection A,  but if the promise or order is an instrument,  there cannot be a holder in due course of the instrument.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3107 - Instrument payable in foreign money

47-3107.
Instrument payable in foreign money
Unless the instrument otherwise provides,  an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3108 - Payable on demand or at definite time

47-3108.
Payable on demand or at definite time
A. A promise or order is " payable on demand"  if it:
1. States that it is payable on demand or at sight,  or otherwise indicates that it is payable at the will of the holder;  or
2. Does not state any time of payment.
B. A promise or order is " payable at a definite time"  if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued,  subject to rights of:
1. Prepayment;
2. Acceleration;
3. Extension at the option of the holder;  or
4. Extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
C. If an instrument,  payable at a fixed date,  is also payable upon demand made before the fixed date,  the instrument is payable on demand until the fixed date and,  if demand for payment is not made before that date,  becomes payable at a definite time on the fixed date.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3109 - Payable to bearer or to order

47-3109.
Payable to bearer or to order
A. A promise or order is payable to bearer if it:
1. States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;
2. Does not state a payee;  or
3. States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
B. A promise or order that is not payable to bearer is payable to order if it is payable:
1. To the order of an identified person;  or
2. To an identified person or order.
A promise or order that is payable to order is payable to the identified person.
C. An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to section 47-3205,  subsection A. An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to section 47-3205,  subsection B.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3110 - Identification of person to whom instrument is payable

47-3110.
Identification of person to whom instrument is payable
A. The person to whom an instrument is initially payable is determined by the intent of the person,  whether or not authorized,  signing as,  or in the name or behalf of,  the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or behalf of the issuer of an instrument and all the signers do not intend the same person as payee,  the instrument is payable to any person intended by one or more of the signers.
B. If the signature of the issuer of an instrument is made by automated means,  such as a check-writing machine,  the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee,  whether or not authorized to do so.
C. A person to whom an instrument is payable may be identified in any way,  including by name,  identifying number,  office or account number. For the purpose of determining the holder of an instrument,  the following rules apply:
1. If an instrument is payable to an account and the account is identified only by number,  the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person,  the instrument is payable to the named person,  whether or not that person is the owner of the account identified by number.
2. If an instrument is payable to:
(a) A trust,  an estate or a person described as trustee or representative of a trust or estate,  the instrument is payable to the trustee,  the representative or a successor of either,  whether or not the beneficiary or estate is also named;
(b) A person described as agent or similar representative of a named or identified person,  the instrument is payable to the represented person,  the representative or a successor of the representative;
(c) A fund or organization that is not a legal entity,  the instrument is payable to a representative of the members of the fund or organization;  or
(d) An office or to a person described as holding an office,  the instrument is payable to the named person,  the incumbent of the office or a successor to the incumbent.
D. If an instrument is payable to two or more persons alternatively,  it is payable to any of them and may be negotiated,  discharged or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively,  it is payable to all of them and may be negotiated,  discharged or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively,  the instrument is payable to the persons alternatively.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3111 - Place of payment

47-3111.
Place of payment
Except as otherwise provided for items in chapter 4 of this title,  an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated,  an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated,  the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business,  the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business,  the place of payment is the residence of the drawee or maker.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3112 - Interest

47-3112.
Interest
A. Unless otherwise provided in the instrument:
1. An instrument is not payable with interest;  and
2. Interest on an interest-bearing instrument is payable from the date of the instrument.
B. Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest,  but the amount of interest payable cannot be ascertained from the description,  interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3113 - Date of instrument

47-3113.
Date of instrument
A. An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in section 47-4401,  subsection C,  an instrument payable on demand is not payable before the date of the instrument.
B. If an instrument is undated,  its date is the date of its issue or,  in the case of an unissued instrument,  the date it first comes into possession of a holder.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3115 - Incomplete instrument

47-3115.
Incomplete instrument
A. " Incomplete instrument"  means a signed writing,  whether or not issued by the signer,  the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
B. Subject to subsection C of this section,  if an incomplete instrument is an instrument under section 47-3104,  it may be enforced according to its terms if it is not completed,  or according to its terms as augmented by completion. If an incomplete instrument is not an instrument under section 47-3104,  but,  after completion,  the requirements of section 47-3104 are met,  the instrument may be enforced according to its terms as augmented by completion.
C. If words or numbers are added to an incomplete instrument without authority of the signer,  there is an alteration of the incomplete instrument under section 47-3407.
D. The burden of establishing that words or numbers were added to an incomplete instrument without authority of the signer is on the person asserting the lack of authority.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3116 - Joint and several liability; contribution

47-3116.
Joint and several liability;  contribution
A. Except as otherwise provided in the instrument,  two or more persons who have the same liability on an instrument as makers,  drawers,  acceptors,  indorsers who indorse as joint payees,  or anomalous indorsers are jointly and severally liable in the capacity in which they sign.
B. Except as provided in section 47-3419,  subsection E or by agreement of the affected parties,  a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.
C. Discharge of one party having joint and several liability by a person entitled to enforce the instrument does not affect the right under subsection B of this section of a party having the same joint and several liability to receive contribution from the party discharged.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3117 - Other agreements affecting instrument

47-3117.
Other agreements affecting instrument
Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements,  the obligation of a party to an instrument to pay the instrument may be modified,  supplemented or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument,  if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified,  supplemented or nullified by an agreement under this section,  the agreement is a defense to the obligation.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3118 - Statute of limitations

47-3118.
Statute of limitations
A. Except as provided in subsection E,  an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or,  if a due date is accelerated,  within six years after the accelerated due date.
B. Except as provided in subsection D or E,  if demand for payment is made to the maker of a note payable on demand,  an action to enforce the obligation of a party to pay the note must be commenced within six years after the demand. If no demand for payment is made to the maker,  an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of ten years.
C. Except as provided in subsection D,  an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three years after dishonor of the draft or ten years after the date of the draft,  whichever period expires first.
D. An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check,  cashier's check or traveler's check must be commenced within three years after demand for payment is made to the acceptor or issuer,  as the case may be.
E. An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within six years after demand for payment is made to the maker,  but if the instrument states a due date and the maker is not required to pay before that date,  the six year period begins when a demand for payment is in effect and the due date has passed.
F. An action to enforce the obligation of a party to pay an accepted draft,  other than a certified check,  must be commenced:
1. Within six years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time;  or
2. Within six years after the date of the acceptance if the obligation of the acceptor is payable on demand.
G. Unless governed by other law regarding claims for indemnity or contribution,  the following actions must be commenced within three years after the cause of action accrues:
1. An action for conversion of an instrument,  for money had and received,  or like action based on conversion;
2. An action for breach of warranty;  or
3. An action to enforce an obligation,  duty or right arising under this chapter and not governed by this section.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3119 - Notice of right to defend action

47-3119.
Notice of right to defend action
In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or chapter 4 of this title,  the defendant may give the third person written notice of the litigation,  and the person notified may then give similar notice to any other person who is answerable over. If the notice states that the person notified may come in and defend and that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations,  the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3201 - Negotiation

47-3201.
Negotiation
A. " Negotiation"  means a transfer of possession,  whether voluntary or involuntary,  of an instrument by a person other than the issuer to a person who thereby becomes its holder.
B. Except for negotiation by a remitter,  if an instrument is payable to an identified person,  negotiation requires transfer of possession of the instrument and its indorsement by the holder. If an instrument is payable to bearer,  it may be negotiated by transfer of possession alone.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3202 - Negotiation subject to rescission

47-3202.
Negotiation subject to rescission
A. Negotiation is effective even if obtained:
1. From an infant,  a corporation exceeding its powers or a person without capacity;
2. By fraud,  duress or mistake;  or
3. In breach of duty or as part of an illegal transaction.
B. To the extent permitted by other law,  negotiation may be rescinded or may be subject to other remedies,  but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3203 - Transfer of instrument; rights acquired by transfer

47-3203.
Transfer of instrument;  rights acquired by transfer
A. An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.
B. Transfer of an instrument,  whether or not the transfer is a negotiation,  vests in the transferee any right of the transferor to enforce the instrument,  including any right as a holder in due course,  but the transferee cannot acquire rights of a holder in due course by a transfer,  directly or indirectly,  from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument.
C. Unless otherwise agreed,  if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor,  the transferee has a specifically enforceable right to the unqualified indorsement of the transferor,  but negotiation of the instrument does not occur until the indorsement is made.
D. If a transferor purports to transfer less than the entire instrument,  negotiation of the instrument does not occur. The transferee obtains no rights under this chapter and has only the rights of a partial assignee.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3204 - Indorsement

47-3204.
Indorsement
A. " Indorsement"  means a signature,  other than that of a signer as maker,  drawer or acceptor,  that alone or accompanied by other words is made on an instrument for the purpose of negotiating the instrument,  restricting payment of the instrument or incurring the indorser's liability on the instrument,  but regardless of the intent of the signer,  a signature and its accompanying words is an indorsement unless the accompanying words,  terms of the instrument,  place of the signature or other circumstances unambiguously indicate that the signature was made for a purpose other than indorsement. For the purpose of determining whether a signature is made on an instrument,  a paper affixed to the instrument is a part of the instrument.
B. " Indorser"  means a person who makes an indorsement.
C. For the purpose of determining whether the transferee of an instrument is a holder,  an indorsement that transfers a security interest in the instrument is effective as an unqualified indorsement of the instrument.
D. If an instrument is payable to a holder under a name that is not the name of the holder,  indorsement may be made by the holder in the name stated in the instrument or in the holder's name,  or both,  but signature in both names may be required by a person paying or taking the instrument for value or collection.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3205 - Special indorsement; blank indorsement; anomalous indorsement

47-3205.
Special indorsement;  blank indorsement;  anomalous indorsement
A. If an indorsement is made by the holder of an instrument,  whether payable to an identified person or payable to bearer,  and the indorsement identifies a person to whom it makes the instrument payable,  it is a " special indorsement" . When specially indorsed,  an instrument becomes payable to the identified person and may be negotiated only by the indorsement of that person. The principles stated in section 47-3110 apply to special indorsements.
B. If an indorsement is made by the holder of an instrument and it is not a special indorsement,  it is a " blank indorsement" . When indorsed in blank,  an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.
C. The holder may convert a blank indorsement that consists only of a signature into a special indorsement by writing,  above the signature of the indorser,  words identifying the person to whom the instrument is made payable.
D. " Anomalous indorsement"  means an indorsement made by a person who is not the holder of the instrument. An anomalous indorsement does not affect the manner in which the instrument may be negotiated.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3207 - Reacquisition

47-3207.
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.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3301 - Person entitled to enforce instrument

47-3301.
Person entitled to enforce instrument
" Person entitled to enforce"  an instrument means the holder of the instrument,  a nonholder in possession of the instrument who has the rights of a holder or a person not in possession of the instrument who is entitled to enforce the instrument pursuant to section 47-3309 or section 47-3418,  subsection D. A person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3302 - Holder in due course

47-3302.
Holder in due course
A. Subject to subsection C of this section and section 47-3106,  subsection D,  " holder in due course"  means the holder of an instrument if:
1. The instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity;  and
2. The holder took the instrument:
(a) For value;
(b) In good faith;
(c) Without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series;
(d) Without notice that the instrument contains an unauthorized signature or has been altered;
(e) Without notice of any claim to the instrument described in section 47-3306;  and
(f) Without notice that any party has a defense or claim in recoupment described in section 47-3305,  subsection A.
B. Notice of discharge of a party,  other than discharge in an insolvency proceeding,  is not notice of a defense under subsection A of this section,  but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense,  claim in recoupment or claim to the instrument.
C. Except to the extent a transferor or predecessor in interest has rights as a holder in due course,  a person does not acquire rights of a holder in due course of an instrument taken:
1. By legal process or by purchase in an execution,  bankruptcy or creditor's sale or similar proceeding;
2. By purchase as part of a bulk transaction not in ordinary course of business of the transferor;  or
3. As the successor in interest to an estate or other organization.
D. If,  under section 47-3303,  subsection A,  paragraph 1,  the promise of performance that is the consideration for an instrument has been partially performed,  the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.
E. If the person entitled to enforce an instrument has only a security interest in the instrument and the person obliged to pay the instrument has a defense,  claim in recoupment or claim to the instrument that may be asserted against the person who granted the security interest,  the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which,  at the time of enforcement of the instrument,  does not exceed the amount of the unpaid obligation secured.
F. To be effective,  notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.
G. This section is subject to any law limiting status as a holder in due course in particular classes of transactions.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3303 - Value and consideration

47-3303.
Value and consideration
A. An instrument is issued or transferred for value if:
1. The instrument is issued or transferred for a promise of performance,  to the extent the promise has been performed;
2. The transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;
3. The instrument is issued or transferred as payment of,  or as security for,  an antecedent claim against any person,  whether or not the claim is due;
4. The instrument is issued or transferred in exchange for a negotiable instrument;  or
5. The instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a third party by the person taking the instrument.
B. " Consideration"  means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument is issued without consideration. If an instrument is issued for a promise of performance,  the issuer has a defense to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection A,  the instrument is also issued for consideration.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3304 - Overdue instrument

47-3304.
Overdue instrument
A. An instrument payable on demand becomes overdue at the earliest of the following times:
1. On the day after the day demand for payment is duly made;
2. If the instrument is a check,  ninety days after its date;  or
3. If the instrument is not a check,  when the instrument has been outstanding for a period of time after its date which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.
B. With respect to an instrument payable at a definite time the following rules apply:
1. If the principal is payable in installments and a due date has not been accelerated,  the instrument becomes overdue upon default under the instrument for nonpayment of an installment,  and the instrument remains overdue until the default is cured.
2. If the principal is not payable in installments and the due date has not been accelerated,  the instrument becomes overdue on the day after the due date.
3. If a due date with respect to principal has been accelerated,  the instrument becomes overdue on the day after the accelerated due date.
C. Unless the due date of principal has been accelerated,  an instrument does not become overdue if there is default in payment of interest but no default in payment of principal.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3305 - Defenses and claims in recoupment

47-3305.
Defenses and claims in recoupment
A. Except as stated in subsection B of 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 which,  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.
2. A defense of the obligor stated in another section of this chapter or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract;  and
3. A claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument,  but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.
B. The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in subsection A,  paragraph 1 of this section but is not subject to defenses of the obligor stated in subsection A,  paragraph 2 of this section or claims in recoupment stated in subsection A,  paragraph 3 of this section against a person other than the holder.
C. Except as stated in subsection D of this section,  in an action to enforce the obligation of a party to pay the instrument,  the obligor may not assert against the person entitled to enforce the instrument a defense,  claim in recoupment or claim to the instrument (section 47-3306) of another person,  but the other person's claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.
D. In an action to enforce the obligation of an accommodation party to pay an instrument,  the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection A of this section that the accommodated party could assert against the person entitled to enforce the instrument,  except the defenses of discharge in insolvency proceedings,  infancy and lack of legal capacity.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3306 - Claims to an instrument

47-3306.
Claims to an instrument
A person taking an instrument,  other than a person having rights of a holder in due course,  is subject to a claim of a property or possessory right in the instrument or its proceeds,  including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3307 - Notice of breach of fiduciary duty

47-3307.
Notice of breach of fiduciary duty
A. In this section:
1. " Fiduciary"  means an agent,  trustee,  partner,  corporate officer or director or other representative owing a fiduciary duty with respect to an instrument.
2. " Represented person"  means the principal,  beneficiary,  partnership,  corporation or other person to whom the duty stated in paragraph 1 of this subsection is owed.
B. If an instrument is taken from a fiduciary for payment or collection or for value,  the taker has knowledge of the fiduciary status of the fiduciary and the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach of fiduciary duty,  the following rules apply:
1. Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the represented person.
2. In the case of an instrument payable to the represented person or the fiduciary as such,  the taker has notice of the breach of fiduciary duty if the instrument is:
(a) Taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary;
(b) Taken in a transaction known by the taker to be for the personal benefit of the fiduciary;  or
(c) Deposited to an account other than an account of the fiduciary,  as such,  or an account of the represented person.
3. If an instrument is issued by the represented person or the fiduciary as such,  and made payable to the fiduciary personally,  the taker does not have notice of the breach of fiduciary duty unless the taker knows of the breach of fiduciary duty.
4. If an instrument is issued by the represented person or the fiduciary as such,  to the taker as payee,  the taker has notice of the breach of fiduciary duty if the instrument is:
(a) Taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary;
(b) Taken in a transaction known by the taker to be for the personal benefit of the fiduciary;  or
(c) Deposited to an account other than an account of the fiduciary,  as such,  or an account of the represented person.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3308 - Proof of signatures and status as holder in due course

47-3308.
Proof of signatures and status as holder in due course
A. In an action with respect to an instrument,  the authenticity of,  and authority to make,  each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature is denied in the pleadings,  the burden of establishing validity is on the person claiming validity,  but the signature is presumed to be authentic and authorized unless the action is to enforce the liability of the purported signer and the signer is dead or incompetent at the time of trial of the issue of validity of the signature. If an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the instrument as a party to the instrument,  the plaintiff has the burden of establishing that the defendant is liable on the instrument as a represented person under section 47-3402,  subsection A.
B. If the validity of signatures is admitted or proved and there is compliance with subsection A of this section,  a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under section 47-3301,  unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved,  the right to payment of the plaintiff is subject to the defense or claim,  except to the extent the plaintiff proves that the plaintiff has rights of a holder in due course which are not subject to the defense or claim.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-3309 - Enforcement of lost, destroyed or stolen instrument

47-3309.
Enforcement of lost,  destroyed or stolen instrument
A. A person not in possession of an instrument is entitled to enforce the instrument if:
1. The person was in possession of the instrument and entitled to enforce it 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
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 of this section must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made,  section 47-3308 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.