(810 ILCS 5/3-203)
(from Ch. 26, par. 3-203)
Transfer of instrument; rights acquired by transfer.
(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 Article and has only the rights of a partial
(Source: P.A. 87-582; 87-1135.)