2025 Session
Last amended: 1992 session
§ 336.3-201 — Negotiation
Plain-Language Summary
Negotiation is the transfer of an instrument that gives the transferee the status of a holder. For bearer instruments, delivery alone is enough. For order instruments, the payee must endorse and deliver.
336.3-201 1992 c 565 s 114
336.3-201 NEGOTIATION.
(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.
History:
History: History:
1992 c 565 s 22
Practical Notes
To ’negotiate’ a check means to transfer it so the new person is the legal holder. For a check to you, you must sign the back (endorse) and hand it over.