§ 6A-3-203 - Transfer of instrument – Rights acquired by transfer. - Rhode Island Statutes

SECTION 6A-3-203

   § 6A-3-203  Transfer of instrument –Rights acquired by transfer. – (a) An instrument is transferred when it is delivered by a person other thanits issuer for the purpose of giving to the person receiving delivery the rightto enforce the instrument.

   (b) Transfer of an instrument, whether or not the transfer isa negotiation, vests in the transferee any right of the transferor to enforcethe instrument, including any right as a holder in due course, but thetransferee cannot acquire rights of a holder in due course by a transfer,directly or indirectly, from a holder in due course if the transferee engagedin fraud or illegality affecting the instrument.

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

   (d) If a transferor purports to transfer less than the entireinstrument, negotiation of the instrument does not occur. The transfereeobtains no rights under this chapter and has only the rights of a partialassignee.