§490:3-203  Transfer of instrument; rights
acquired by transfer.  (a)  An instrument is transferred when it is
delivered by a person other than its issuer for the purpose of giving to the
person receiving delivery the right 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 the instrument, including any right as a holder in due
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 illegality affecting the instrument.



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



(d)  If a transferor purports to transfer less
than the entire instrument, negotiation of the instrument does not occur.  The
transferee obtains no rights under this article and has only the rights of a
partial assignee. [L 1991, c 118, pt of §1]