California Code, COM 3201.

California Code, COM 3201.

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Commercial Code - COM

DIVISION 3. NEGOTIABLE INSTRUMENTS [3101 - 3605] Â Â ( Division 3 repealed and added by Stats. 1992, Ch. 914, Sec. 6. ) Â Â

CHAPTER 2. Negotiation, Transfer, and Indorsement [3201 - 3207] Â Â ( Chapter 2 added by Stats. 1992, Ch. 914, Sec. 6. )

  3201.  (a) “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder. (b) Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the instrument and its indorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.)