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Can you summarize NHRS 382-A:3-206?
UNIFORM COMMERCIAL CODE > Restrictive Indorsement.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the use of restrictive indorsements on negotiable instruments. It states that an indorsement that limits payment to a particular person or prohibits further transfer or negotiation of the instrument is not effective to prevent such transfer or negotiation. Additionally, an indorsement that states a condition to the right of the indorsee to receive payment does not affect the indorsee’s right to enforce the instrument. The document also provides rules for different scenarios involving indorsements, such as when an instrument bears an indorsement described in Section 4-201(b) or when an indorsement designates payment to be made to the indorsee as an agent, trustee, or fiduciary. The presence of such indorsements does not prevent a purchaser of the instrument from becoming a holder in due course, unless the purchaser is a converter under subsection (c) or has notice or knowledge of breach of fiduciary duty as stated in subsection (d).
Whom does it apply to?
Parties involved in the transfer or negotiation of negotiable instruments
What does it govern?
Restrictive indorsement
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire