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possessor of an instrument with all necessary indorsements


transfer such that transferee becomes a holder


voluntary transfer to a third party of the rights arising from a contract

shelter rule

transferee gets rights of transferor

negotiation of bearer paper

transferred by mere possession

negotiation of order paper

transfered by possession and indorsement by all appropriate parties

imposter rule

indorsement of an impostor or of any other person in the name of the named payee is effective if the impostor has induced the maker or drawer to issue the instrument to him using the name of the payee

the fictitious payee rule

an indorsement by any person in the name of the named payee is effective if an agent of the maker or drawer has supplied her with the name of the payee for fraudulent purposes

negotiation subject to rescission

negotiation is valid even though a transaction is void or voidable

special indorsement

one identifying an indorsee to be paid and making the instrument order paper

restrictive indorsement

one attempting to limit the rights of the indorsee

unrestrictive indorsement

one that does not attempt to restrict the rights of the indorsee

indorsements for deposit or collection

effectively limit further negotiation to those consistent with the indorsement

indorsement in trust

effectively require the indorsee to pay or apply all funds in accordance with the indorsement

indorsements with ineffective restrictions

include conditional indorsements and indorsements attempting to prohibit further negotiation

unqualified indorsement

one that imposes liability on the indorser

qualified indorsement without recourse

one that limits the indorser's liability


piece of paper affixed to the instrument

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