8.3A-203 - A-203. Transfer of instrument; rights acquired by transfer. - Virginia Statutes

§ 8.3A-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 theright 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 theinstrument, including any right as a holder in due course, but the transfereecannot acquire rights of a holder in due course by a transfer, directly orindirectly, from a holder in due course if the transferee engaged in fraud orillegality affecting the instrument.

(c) Unless otherwise agreed, if an instrument is transferred for value andthe transferee does not become a holder because of lack of endorsement by thetransferor, the transferee has a specifically enforceable right to theunqualified endorsement of the transferor, but negotiation of the instrumentdoes 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 norights under this title and has only the rights of a partial assignee.

(Code 1950, §§ 6-379, 6-382 through 6-384, 6-401, 6-410; 1964, c. 219, §§8.3-201, 8.3-202; 1992, c. 693.)