Reacquisition of an instrument occurs if itistransferred to a former holder, by negotiation orotherwise. A former holder who reacquires theinstrumentmaycancel endorsements made after the reacquirer first became a holder of the instrument. Ifthe cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An endorser whose endorsement iscanceled is discharged, and the discharge is effective against any subsequent holder.
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