554.3203 Transfer of instrument — rights acquired by transfer. 1. An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. 2. Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as aholder in due course, but the transferee cannot acquire rights of a holder in due course by atransfer, directly or indirectly, from a holder in due course if the transferee engaged in fraudor illegality affecting the instrument. 3. Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of endorsement by the transferor, the transfereehas a specifically enforceable right to the unqualified endorsement of the transferor, butnegotiation of the instrument does not occur until the endorsement is made. 4. If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. , butnegotiation of the instrument does not occur until the endorsement is made. 4. If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this Article and has onlythe rights of a partial assignee. 94 Acts, ch 1167, §31, 121, 122Referred to in §554.3103 Sat Dec 23 01:55:46 2023 Iowa Code 2024, Section 554.3203 (24, 0)
Iowa Legal Code