84-3-201. 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: L. 1991, ch. 296, § 20; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text. It is derived from the former 83-3-202. Historical case and statutory references may be obtained from the 1965 or 1983 bound Volume 7 of the Kansas Statutes Annotated.
The 1991 amendments to this section made two changes which may have practical effect. The first is that an involuntary transfer of possession can now be a negotiation. Previously, the transfer had to be voluntary. A thief or finder can now take "by negotiation," whereas previously they could not, although they could be holders if there was no problem regarding a signature on order paper. Second, it is now clear that "issue" of an instrument is not negotiation.
Revisor's Note:
Former section 84-3-201 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.
CASE ANNOTATIONS
1. Whether demand for payment on letter of credit was nonconforming relieving bank of obligation to pay examined. Brul v. MidAmerican Bank & Trust Co., 820 F. Supp. 1311, 1314 (1993).
|
|