§ 26-1-3.1-203 — Transfer of instrument; rights acquired by transfer

Indiana § 26-1-3.1-203

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(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
endorsement by the transferor, the transferee has a specifically
enforceable right to the unqualified endorsement of the transferor, but
negotiation of the instrument does not occur until the endorsement 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 IC 26-1-3.1 and has only the rights of a partial assignee.

Legislative History

As added by P.L.222-1993, SEC.5.