HRS §490:3-207
Getting a check or note back from a former holder
This section explains what happens when a financial document like a check or note goes back to someone who used to hold it. That person can cancel later signatures, which may let them use the document again. Canceled signatures mean the person who signed is no longer responsible.
The statute, as written — 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.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.