Effective – 28 Aug 1992, 2 histories 400.3-201. 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, […]
Effective – 28 Aug 1992, 2 histories 400.3-202. Negotiation subject to rescission. — (a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction. (b) To […]
Effective – 28 Aug 1992, 2 histories 400.3-203. Transfer of instrument — right 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 […]
Effective – 28 Aug 1992, 2 histories 400.3-204. Endorsement. — (a) “Endorsement” 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 (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring […]
Effective – 28 Aug 1992, 2 histories 400.3-205. Special endorsement — blank endorsement — anomalous endorsement. — (a) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whom it makes the instrument payable, it is a […]
Effective – 28 Aug 1992 400.3-206. Restrictive endorsement. — (a) An endorsement 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 endorsement stating a condition to the right of the endorsee to receive payment […]
Effective – 28 Aug 1992, 2 histories *400.3-207. 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 endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to […]
