70A-3-203 - Transfer of instrument -- Rights acquired by transfer. - Utah Statutes

70A-3-203. Transfer of instrument -- Rights acquired by transfer.
(1) An instrument is transferred when it is delivered by a person other than its issuer forthe purpose of giving to the person receiving delivery the right to enforce the instrument.
(2) Transfer of an instrument, whether or not the transfer is a negotiation, vests in thetransferee any right of the transferor to enforce the instrument, including any right as a holder indue 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 illegalityaffecting the instrument.
(3) Unless otherwise agreed, if an instrument is transferred for value and the transfereedoes not become a holder because of lack of indorsement by the transferor, the transferee has aspecifically enforceable right to the unqualified indorsement of the transferor, but negotiation ofthe instrument does not occur until the indorsement is made.
(4) If a transferor purports to transfer less than the entire instrument, negotiation of theinstrument does not occur. The transferee obtains no rights under this chapter and has only therights of a partial assignee.

Repealed and Re-enacted by Chapter 237, 1993 General Session