                                 CODE OF VIRGINIA

TRANSFER OF INSTRUMENT; RIGHTS ACQUIRED BY TRANSFER (§ 8.3A-203)

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 endorsement by the
transferor, the transferee has a specifically enforceable right to the
unqualified endorsement of the transferor, but negotiation of the instrument
does not occur until the endorsement 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 title and has only the rights of a partial assignee.

HISTORY: Code 1950, §§ 6-379, 6-382 through 6-384, 6-401, 6-410; 1964, c. 219,
§§ 8.3-201, 8.3-202; 1992, c. 693.