§3-1201. Negotiation (1). “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). Except for negotiation by a remitter, if an instrument is payable to an identified […]
§3-1202. Negotiation subject to rescission (1). Negotiation is effective even if obtained: (a). From an infant, a corporation exceeding its powers or a person without capacity; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). By fraud, duress or mistake; or [PL 1993, c. 293, Pt. A, §2 (NEW).] (c). In breach […]
§3-1203. Transfer of instrument; rights acquired by transfer (1). An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). Transfer of an instrument, whether […]
§3-1204. Indorsement (1). “Indorsement” means a signature, other than that of a signer as maker, drawer or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of: (a). Negotiating the instrument; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). Restricting payment of the instrument; or […]
§3-1205. Special indorsement; blank indorsement; anomalous indorsement (1). If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, it is a “special indorsement.” When specially indorsed, an instrument becomes payable to […]
§3-1206. Restrictive indorsement (1). An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). An indorsement stating a condition to the right of the indorsee […]
§3-1207. 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, […]
