(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.

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Terms Used In California Commercial Code 3201

  • Bearer: means a person in possession of a negotiable instrument, document of title, or certificated security that is payable to bearer or endorsed in blank. See California Commercial Code 1201
  • Holder: means :

    California Commercial Code 1201

  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201

(Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.)