When a note is lost, impaired, or destroyed, the owner loses the right to be paid its value, even if its existence can be proved with a copy.

Question

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The Uniform Commercial Code (UCC) allows for the enforcement of lost, stolen, or destroyed negotiable instruments, such as notes, provided that the owner can prove the instrument's terms and their right to enforce it. This means the owner does not lose the right to be paid its value if they can prove its existence and their ownership.

When a Note Is Lost, Impaired, or Destroyed, the Owner