(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 instrument and its endorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
(1959, P.A. 133, S. 3-201; P.A. 91-304, S. 20.)
History: P.A. 91-304 entirely replaced former provisions re transfer of an instrument with provisions re negotiation of an instrument, a restatement of Sec. 42a-3-202(1), revised to 1991.
See Sec. 42a-3-203(b) and (c) and Sec. 42a-3-204(c) for successor provisions to Sec. 42a-3-201, revised to 1991, re transfer of an instrument and right to endorsement.
Cited. 202 C. 277.
Cited. 35 CA 326.
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