Michigan Compiled Laws § 440.3201 Negotiation; Definition; Transfer Of Possession.


440.3201 Negotiation; definition; transfer of possession.

Sec. 3201.

(1) “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.

(2) 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 endorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.


History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993


Section: 440.3201  440.3202  440.3203  440.3204  440.3205  440.3206  440.3207  440.3208    Next

Last modified: October 10, 2016