Tex. Bus. & Com. Code § 3.201 · Subchapter B. NEGOTIATION, TRANSFER, AND INDORSEMENT
NEGOTIATION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Amended by Acts 1995, 74th Leg., ch. 921, Sec. 1, eff. Jan. 1, 1996.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.3.htm
- Text hash
- sha256 d2cc796665ed676f237794f36110cb94a9dcfdeefb03087d09fb0211f8ed0f9d
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 1 provision
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Business & Commerce Code
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