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Can you summarize IACO 554.3203?
UNIFORM COMMERCIAL CODE > Transfer of instrument rights acquired by transfer.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, pertains to the transfer of instruments and the rights acquired through such transfers. It states that an instrument is considered transferred when it is delivered by a person other than its issuer to give the recipient the right to enforce the instrument. The transfer of an instrument, whether through negotiation or not, grants the transferee the same rights as the transferor, including the rights of a holder in due course. However, if the transferee engaged in fraud or illegality related to the instrument, they cannot acquire the rights of a holder in due course. The document also addresses the transfer of partial instruments, stating that if a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur, and the transferee only obtains the rights of a partial assignee. Unless otherwise agreed, if an instrument is transferred for value but lacks endorsement by the transferor, the transferee has a specifically enforceable right to the unqualified endorsement of the transferor, but negotiation of the instrument does not occur until the endorsement is made.
Whom does it apply to?
Persons involved in the transfer of instruments
What does it govern?
Transfer of instrument rights acquired by transfer
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Iowa