Code of Alabama
Ala. Code § 7-3-201 (2026)
Negotiation.
✓ official Alabama Legislature (ALISON) text, current July 2026
(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 indorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
(Acts 1995, No. 95-668, p. 1381, §1.)
Notes of Decisions
Cited in 5
cases, 2012–2016 · leading case: Summerlin v. Shellpoint Mortg. Servs., 165 F. Supp. 3d 1099 (N.D. Ala. 2016).
Summerlin v. Shellpoint Mortg. Servs., 165 F. Supp. 3d 1099 (N.D. Ala. 2016). “”) (citing Ala. Code §§ 7-3-201 (b), 7-3-205(b)). Plaintiff alleges that the “mortgage was directly endorsed to [TB&W].”
Perry v. Fed. Nat'l Mortg. Ass'n, 100 So. 3d 1090 (Ala. Civ. App. 2012). “”); see also § 7-3-201(b). Although the indorsement was undated, Fox averred that EverHome had “acquired its interest in the note on or about July 2, 2007.”
Smalls v. Wells Fargo Bank, N.A., 180 So. 3d 910 (Ala. Civ. App. 2015). “§ 7-3-201(b), Ala.Code 1975. Wells Fargo concedes that the record lacks evidence of an indorsement of the note to Wells Fargo, and it does not claim to have been issued the note.”
Turner v. Wells Fargo Bank, N.A., 254 So. 3d 194 (Ala. Civ. App. 2016). “§ 7-3-201(b), Ala. Code 1975." Smalls v. Wells Fargo Bank, N.”
Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012). “§ 7-3-201(b). Specifically, “[w]hen endorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone unless specially indorsed.”
— Ala. Code § 7-3-201(b) — 4 cases
Perry v. Fed. Nat'l Mortg. Ass'n, 100 So. 3d 1090 (Ala. Civ. App. 2012). “”); see also § 7-3-201(b). Although the indorsement was undated, Fox averred that EverHome had “acquired its interest in the note on or about July 2, 2007.”
Smalls v. Wells Fargo Bank, N.A., 180 So. 3d 910 (Ala. Civ. App. 2015). “§ 7-3-201(b), Ala.Code 1975. Wells Fargo concedes that the record lacks evidence of an indorsement of the note to Wells Fargo, and it does not claim to have been issued the note.”
Turner v. Wells Fargo Bank, N.A., 254 So. 3d 194 (Ala. Civ. App. 2016). “§ 7-3-201(b), Ala. Code 1975." Smalls v. Wells Fargo Bank, N.”
Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012). “§ 7-3-201(b). Specifically, “[w]hen endorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone unless specially indorsed.”
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