§ 4-3-203 — 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 the transferee any right of the transferor to enforce the instrument,
including any right as a holder in due course, but the transferee cannot acquire
rights of a holder in due course by a transfer, directly or indirectly, from a holder in
due course if the transferee engaged in fraud or illegality affecting the instrument.

(c) Unless otherwise agreed, if an instrument is transferred for value and the
transferee does not become a holder because of lack of indorsement by the
transferor, the transferee has a specifically enforceable right to the unqualified
indorsement of the transferor, but negotiation of the instrument does not occur
until the indorsement is made.

(d) If a transferor purports to transfer less than the entire instrument,
negotiation of the instrument does not occur. The transferee obtains no rights
under this article and has only the rights of a partial assignee.

Legislative History

Source: L. 94: Entire article R&RE, p. 850, � 1, effective January 1, 1995.