47-3201. Negotiation A. " 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. B. Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the […]
47-3202. Negotiation subject to rescission A. Negotiation is effective even if obtained: 1. From an infant, a corporation exceeding its powers or a person without capacity; 2. By fraud, duress or mistake; or 3. In breach of duty or as part of an illegal transaction. B. To the extent permitted by other law, negotiation may […]
47-3203. Transfer of instrument; rights acquired by transfer A. 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. B. Transfer of an instrument, whether or not the transfer is a negotiation, vests in […]
47-3204. Indorsement A. " 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 negotiating the instrument, restricting payment of the instrument or incurring the indorser’s liability on the instrument, but regardless of the […]
47-3205. Special indorsement; blank indorsement; anomalous indorsement A. 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 […]
47-3206. Restrictive indorsement A. 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. B. An indorsement stating a condition to the right of the indorsee to receive payment does not affect the right of […]
47-3207. 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, […]
