New Jersey § 12a:3-203

§ 12a:3-203.

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 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 chapter and has only the rights of a

partial assignee.