1. (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.
2. (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.

HISTORY: 1962 Code Section 10.3-201; 1966 (54) 2716; 2008 Act No. 204, Section 2, eff July 1, 2008. Definitional Cross References: "Holder" Section 36-1-201(20) "Indorsement" Section 36-3-204(a) "Instrument" Section 36-3-104(b) "Issuer" Section 36-3-105(c) "Payable to bearer" Section 36-3-109(a) "Payable to an identified person" Section 36-3-109(b) "Person" Section 36-1-201(30) "Remitter" Section 36-3-103(a)(15) "Transfer of instrument" Section 36-3-203(a)