Hwang Bankruptcy Case – Who is a “holder” of a note entitled to enforce it – California Commercial Code Section 3301

The following code section is provided to help assist in deciphering the Hwang motion from relief of automatic stay in bankruptcy case in California:

3301.  "Person entitled to enforce" an instrument means

(a) the holder of the instrument,
(b) a nonholder in possession of the instrument who has the rights of a holder,

or

(c) a person not in possession of the instrument who is entitled to enforce the
instrument pursuant to Section 3309 or subdivision (d) of Section
3418. A person may be a person entitled to enforce the instrument
even though the person is not the owner of the instrument or is in
wrongful possession of the instrument.

Hwang Bankruptcy Case: California Commercial Code Section 1201 (21)

This code section is to be used for a blog post we are creating for the Hwang Chapter 7 bankruptcy case:

1201. (a) Unless the context otherwise requires, words or phrases
defined in this section, or in the additional definitions contained
in other divisions of this code that apply to particular divisions or
chapters thereof, have the meanings stated.

(21) “Holder,” means:

(A) the person in possession of a negotiable instrument that is
payable either to bearer or, to an identified person that is the
person in possession; or

(B) the person in possession of a document of title if the goods
are deliverable either to bearer or to the order of the person in
possession.

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.