Tennessee Code Annotated
Tenn. Code Ann. § 47-3-201 (2026)
Negotiation
✓ current as of May 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 endorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
Acts 1995, ch. 397, § 2.
Notes of Decisions
Cited in 14
cases, 1974–2017 · leading case: Com. Union Bank v. Welch (In Re Welch), 29 B.R. 819 (Bankr. M.D. Tenn. 1982).
Com. Union Bank v. Welch (In Re Welch), 29 B.R. 819 (Bankr. M.D. Tenn. 1982). “Tenn.Code Ann. § 47-3-201 (1979) provides in relevant part: “Transfer — Right to endorsement.”
Martin v. Martin, 755 S.W.2d 793 (Tenn. Ct. App. 1988). “T.C.A. § 47-3-201 provides that in any transfer for value of an instrument not then payable to bearer, the transferee must obtain the endorsement of the transferor in order to acquire the status of a holder.”
Guar. Partners v. Huff, 830 S.W.2d 73 (Tenn. Ct. App. 1992). “” We also find equally untenable Guarantor Partners’ argument on appeal that it has the rights of a holder in due course by virtue of the shelter rule in Tenn. Code Ann. § 47-3-201 (1). Since Guarantor Partners is not entitled to a judgment as a matter of law under either…”
George Jones v. Select Portfolio Servicing, 672 F. App'x 526 (6th Cir. 2016). “(citing Tenn. Code Ann. §§ 47-3-201 , 47-3-203, 47-3-301, 47-3-302).”
Mostoller v. Saxon Mortg. Servs., Inc. (In re Hunter), 466 B.R. 439 (Bankr. E.D. Tenn. 2012). “If an instrument is payable to bearer, it may be negotiated by transfer of possession alone[;] Tenn.Code Ann. § 47-3-201 (2001), and “endorsement” which is defined in material part as: a signature, other than that of a signer as maker, drawer, or acceptor, that alone or…”
Third Nat. Bk., Nashville v. Hardi-Gardens Sup. of Ill., Inc., 380 F. Supp. 930 (M.D. Tenn. 1974). “This issue is controlled by the so-called shelter provision set forth in Section 3-201(1) of the Code, T.C.A. § 47-3-201(1): 47-3-201. Transfer—Right to endorsement—(1) Transfer of an instrument vests in the transferee such rights as the transferor has therein, except that a…”
Lake Hiwassee Dev. Co. v. Pioneer Bank, 535 S.W.2d 323 (Tenn. 1976). “” T.C.A. § 47-3-201(3). T.C.A. § 47-3-414 provides: “Unless the indorsement otherwise specifies (as by such words as ‘without recourse’) every indorser engages that upon dishonor and any necessary notice of dishonor and protest he will pay the instrument according to its tenor…”
Donaldson v. BAC Home Loans Servicing, L.P., 813 F. Supp. 2d 885 (M.D. Tenn. 2011). “Nelson, the Tennessee Court of Appeals relied on a Comment to § 47-3-201, which contains the same language as § 47 — 3—203(b), to find that an intended transferee of an unendorsed promissory note could enforce the note.”
Deposit Recovery Corp. v. Santini, 765 S.W.2d 764 (Tenn. Ct. App. 1988). “T.C.A. § 47-3-201 states: *767 (1) The transfer of an instrument vests in the transferee such rights as a trans-feror has therein, except that a transferee who has itself been a party to any fraud or illegality effecting the instrument or who as a prior holder had notice of a…”
Piper v. Goodwin, 20 F.3d 216 (6th Cir. 1994). “The facts of this ease are better analyzed under Tenn Code Ann. § 47-3-201, which provides: 47-3-201.”
Sheila Whitmore v. Green Tree Servicing, 658 F. App'x 793 (6th Cir. 2016). “” Tenn. Code § 47-3-201(a). 3 . Green Tree attached the Note to its response to its motion to amend the complaint, and the Whitmores do not dispute that Green Tree has possession of the Note.”
Com. Union Bank v. Welch (In re Welch), 29 B.R. 824 (Bankr. M.D. Tenn. 1982). “Tenn.Code Ann. § 47-3-201 (1979) provides in pertinent part: “Transfer — Right to endorsement — (1) Transfer of an instrument vests in the transferee such rights as the transferor has therein.”
— Tenn. Code Ann. § 47-3-201(1) — 1 case
Third Nat. Bk., Nashville v. Hardi-Gardens Sup. of Ill., Inc., 380 F. Supp. 930 (M.D. Tenn. 1974). “This issue is controlled by the so-called shelter provision set forth in Section 3-201(1) of the Code, T.C.A. § 47-3-201(1): 47-3-201. Transfer—Right to endorsement—(1) Transfer of an instrument vests in the transferee such rights as the transferor has therein, except that a…”
— Tenn. Code Ann. § 47-3-201(3) — 2 cases
Lake Hiwassee Dev. Co. v. Pioneer Bank, 535 S.W.2d 323 (Tenn. 1976). “” T.C.A. § 47-3-201(3). T.C.A. § 47-3-414 provides: “Unless the indorsement otherwise specifies (as by such words as ‘without recourse’) every indorser engages that upon dishonor and any necessary notice of dishonor and protest he will pay the instrument according to its tenor…”
Com. Union Bank v. Welch (In re Welch), 29 B.R. 824 (Bankr. M.D. Tenn. 1982). “Tenn.Code Ann. § 47-3-201 (1979) provides in pertinent part: “Transfer — Right to endorsement — (1) Transfer of an instrument vests in the transferee such rights as the transferor has therein.”
— Tenn. Code Ann. § 47-3-201(a) — 1 case
Sheila Whitmore v. Green Tree Servicing, 658 F. App'x 793 (6th Cir. 2016). “” Tenn. Code § 47-3-201(a). 3 . Green Tree attached the Note to its response to its motion to amend the complaint, and the Whitmores do not dispute that Green Tree has possession of the Note.”
— Tenn. Code Ann. § 47-3-201(l) — 1 case
Guar. Partners v. Huff, 830 S.W.2d 73 (Tenn. Ct. App. 1992). “” We also find equally untenable Guarantor Partners’ argument on appeal that it has the rights of a holder in due course by virtue of the shelter rule in Tenn. Code Ann. § 47-3-201 (1). Since Guarantor Partners is not entitled to a judgment as a matter of law under either…”
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