336.3-202 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-202 NEGOTIATION SUBJECT TO RESCISSION. (a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction. (b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.

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.

This legal document, Minnesota Statutes 336.3-204, governs the concept of endorsement in the Uniform Commercial Code. An endorsement refers to a signature made on an instrument for the purpose of negotiating the instrument, restricting payment, or incurring liability. The signature and accompanying words are considered an endorsement unless there are clear indications that the signature was made for a different purpose. The document defines an endorser as a person who makes an endorsement.

This section of the Minnesota Statutes, under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, discusses special endorsement, blank endorsement, and anomalous endorsement. A special endorsement occurs when the holder of an instrument endorses it to a specific person, making the instrument payable only to that person. A blank endorsement, on the other hand, occurs when the holder endorses the instrument without specifying a person, making it payable to bearer and allowing it to be negotiated by transfer of possession alone.

This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically section 336.3-206, addresses the concept of restrictive endorsement. It states that an endorsement on an instrument 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 endorsement stating a condition to the right of the endorsee to receive payment does not affect the endorsee’s right to enforce the instrument.

336.3-207 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-207 REACQUISITION. Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An endorser whose endorsement is canceled is discharged, and the discharge is effective against any subsequent holder.

336.3-301 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-301 PERSON ENTITLED TO ENFORCE INSTRUMENT. ‘Person entitled to enforce’ an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the rights of a holder, or (iii) a person not in possession of the instrument who is entitled to enforce the instrument pursuant to section 336.3-309 or 336.3-418 (d). A person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument.

This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, defines the concept of a ‘holder in due course’. A holder in due course refers to a person who holds an instrument, such as a negotiable instrument, without any apparent evidence of forgery, alteration, or irregularity that questions its authenticity. To be considered a holder in due course, certain conditions must be met, including taking the instrument for value, in good faith, and without notice of any issues related to the instrument.

This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the concept of value and consideration in relation to instruments. An instrument is considered issued or transferred for value if certain conditions are met, such as a promise of performance being fulfilled, acquisition of a security interest or lien, payment of an antecedent claim, exchange for a negotiable instrument, or incurring an irrevocable obligation to a third party.

This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the concept of overdue instruments. An instrument payable on demand becomes overdue at the earliest of three times: the day after demand for payment is duly made, 90 days after the date for checks, or when the instrument has been outstanding for an unreasonably long period of time considering the nature of the instrument and trade usage.