                                 CODE OF VIRGINIA

PROOF OF SIGNATURES AND STATUS AS HOLDER IN DUE COURSE (§ 8.3A-308)

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 incapacitated 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 &#xA7; 8.3A-402 (a).

b. If the validity of signatures is admitted or proved and there is compliance
with subsection (a), a plaintiff producing the instrument is entitled to payment
if the plaintiff proves entitlement to enforce the instrument under &#xA7;
8.3A-301, 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.

HISTORY: Code 1950, § 6-411; 1964, c. 219, § 8.3-307; 1992, c. 693; 1997, c.
801.