ORS 73.0305
Defenses and claims in recoupment


(1)

Except as stated in subsection (2) of this section, the right to enforce the obligation of a party to pay an instrument is subject to the following:

(a)

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;

(b)

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

(c)

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.

(2)

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 (1)(a) of this section, but is not subject to defenses of the obligor stated in subsection (1)(b) of this section or claims in recoupment stated in subsection (1)(c) of this section against a person other than the holder.

(3)

Except as stated in subsection (4) 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 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.

(4)

In an action to enforce the obligation of an accommodation party or pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (1) 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. [1993 c.545 §34]

Source: Section 73.0305 — Defenses and claims in recoupment, https://www.­oregonlegislature.­gov/bills_laws/ors/ors073.­html.

73.0101
Short title
73.0102
Application of chapter
73.0103
Definitions
73.0104
Negotiable instrument
73.0105
Issue of instrument
73.0106
Unconditional promise or order
73.0107
Instrument payable in foreign money
73.0108
Payable on demand or at definite time
73.0109
Payable to bearer or to order
73.0110
Identification of person to whom instrument is payable
73.0111
Place of payment
73.0112
Interest
73.0113
Date of instrument
73.0114
Contradictory terms of instrument
73.0115
Incomplete instrument
73.0116
Joint and several liability
73.0117
Other agreements affecting instrument
73.0118
Statute of limitations
73.0119
Notice of right to defend action
73.0201
Negotiation
73.0202
Negotiation subject to rescission
73.0203
Transfer of instrument
73.0204
Indorsement
73.0205
Special indorsement
73.0206
Restrictive indorsement
73.0207
Reacquisition
73.0301
Person entitled to enforce instrument
73.0302
Holder in due course
73.0303
Value and consideration
73.0304
Overdue instrument
73.0305
Defenses and claims in recoupment
73.0306
Claims to an instrument
73.0307
Notice of breach of fiduciary duty
73.0308
Proof of signatures and status as holder in due course
73.0309
Enforcement of lost, destroyed or stolen instrument
73.0310
Effect of instrument on obligation for which taken
73.0311
Accord and satisfaction
73.0312
Lost, destroyed or stolen cashier’s check, teller’s check or certified check
73.0401
Signature
73.0402
Signature by representative
73.0403
Unauthorized signature
73.0404
Impostors
73.0405
Employer’s responsibility for fraudulent indorsement by employee
73.0406
Negligence contributing to forged signature or alteration of instrument
73.0407
Alteration
73.0408
Drawee not liable on unaccepted draft
73.0409
Acceptance of draft
73.0410
Acceptance varying draft
73.0411
Refusal to pay cashier’s checks, teller’s checks and certified checks
73.0412
Obligation of issuer of note or cashier’s check
73.0413
Obligation of acceptor
73.0414
Obligation of drawer
73.0415
Obligation of indorser
73.0416
Transfer warranties
73.0417
Presentment warranties
73.0418
Payment or acceptance by mistake
73.0419
Instruments signed for accommodation
73.0420
Conversion of instrument
73.0501
Presentment
73.0502
Dishonor
73.0503
Notice of dishonor
73.0504
Excused presentment and notice of dishonor
73.0505
Evidence of dishonor
73.0601
Discharge and effect of discharge
73.0602
Payment
73.0603
Tender of payment
73.0604
Discharge by cancellation or renunciation
73.0605
Discharge of indorsers and accommodation parties
Green check means up to date. Up to date