Hwang Case – California Commercial Code Section 3201

The following code is to be used for an article we are publishing on the Hwang Bankruptcy Case from California.

California Commercial Code Section 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.