400.3-203. Transfer of instrument--right acquired by transfer. - Missouri Statutes

Transfer of instrument--right acquired by transfer.

400.3-203. (a) An instrument is transferred when it isdelivered by a person other than its issuer for the purpose ofgiving to the person receiving delivery the right to enforce theinstrument.

(b) Transfer of an instrument, whether or not the transferis a negotiation, vests in the transferee any right of thetransferor to enforce the instrument, including any right as aholder in due course, but the transferee cannot acquire rights ofa holder in due course by a transfer, directly or indirectly,from a holder in due course if the transferee engaged in fraud orillegality affecting the instrument.

(c) Unless otherwise agreed, if an instrument istransferred for value and the transferee does not become a holderbecause of lack of endorsement by the transferor, the transfereehas a specifically enforceable right to the unqualifiedendorsement of the transferor, but negotiation of the instrumentdoes not occur until the endorsement is made.

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

(L. 1992 S.B. 448)

*No continuity with § 400.3-203 as repealed by L. 1992 S.B. 448.