Hwang Bankruptcy Case – Motion for relief from automatic stay – and Cal Commercial Code Section 3203

The following is for a blog we are posting on the Hwang Bankruptcy Case:

California Commercial Code Section 3203.  (a) An instrument is transferred when it is delivered by a

person other than its issuer for the purpose of giving to the person
receiving delivery the right to enforce the instrument.

   (b) Transfer of an instrument, whether or not the transfer is a
negotiation, vests in the transferee any right of the transferor to
enforce the instrument, including any right as a holder in due
course, but the transferee cannot acquire rights of a holder in due
course by a transfer, directly or indirectly, from a holder in due
course if the transferee engaged in fraud or illegality affecting the
instrument.

   (c) Unless otherwise agreed, if an instrument is transferred for
value and the transferee does not become a holder because of lack of
indorsement by the transferor, the transferee has a specifically
enforceable right to the unqualified indorsement of the transferor,
but negotiation of the instrument does not occur until the
indorsement is made.

   (d) If a transferor purports to transfer less than the entire
instrument, negotiation of the instrument does not occur. The
transferee obtains no rights under this division and has only the
rights of a partial assignee.