(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 division and has only the rights of a partial assignee.
Notes of Decisions
Remington Investments, Inc. v. Kadenacy, 930 F. Supp. 446 (C.D. Cal. 1996).
“Thus, assuming ar-guendo that the federal statute discussed below did not apply to plaintiff, this Court would look, not to the statute of limitations for personal guaranties, but to the California Commercial Code section 3203 2 which provides that the transferee has the same…”
In Re Jackson, 451 B.R. 24 (Bankr. E.D. Cal. 2011).
“Moreover, a person who has an ownership right in an instrument might not be a person entitled to enforce the instrument.”
In re: Kimberly Dawn Franklin (9th Cir. BAP 2021).
“See Cal. Com. Code §§ 3203 ; § 9109(a)(3) (authorizing transfers of the right to enforce a note and providing that Article 9 governs sales of promissory notes); see also Cal.”
In re: Carol Lee Depuydt-Meier (9th Cir. BAP 2021).
“In this case, the First and Second Allonges — even if inadequately affixed to the Note — still evidenced the chain of deliveries of the original Note from the FDIC to U.”
United States v. Allison (E.D. Cal. 2022).
“; see 8 also Cal. Com. Code § 3203 (a) (“An instrument is transferred when it is delivered by a person 9 other than its issuer for the purpose of giving to the person receiving delivery the right to enforce 10 the instrument.”
Piceno Salazar v. Select Portfolio Servicing, Inc. (E.D. Cal. 2025).
“2 While Plaintiff’s theory as to how Defendant violated the California Commercial Code is 3 not particularly clear on the face of the complaint, to the extent that Plaintiff contends that 4 California Commercial Code section 3203 requires that a transferee obtain possession of…”
— Cal. Commercial Code § 3203(a) — 1 case
— Cal. Commercial Code § 3203(b) — 1 case
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