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Can you summarize MNST 336.3-203?
UNIFORM COMMERCIAL CODE > TRANSFER OF INSTRUMENT; RIGHTS ACQUIRED BY TRANSFER.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the transfer of instruments and the rights acquired through such transfers. According to the document, an instrument is considered transferred when it is delivered by a person other than its issuer with the intention of giving 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 states that if an instrument is transferred for value but lacks endorsement by the transferor, the transferee has a specifically enforceable right to the unqualified endorsement. However, negotiation of the instrument does not occur until the endorsement is made. It is important to note 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. This document was repealed in 1992.
Whom does it apply to?
Persons involved in the transfer of instruments
What does it govern?
Transfer of instruments and rights acquired by transfer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota