ORS 73.0203¹
Transfer of instrument
  • rights acquired by transfer

(1) 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.

(2) 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 has engaged in fraud or illegality affecting the instrument.

(3) 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.

(4) 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. [1993 c.545 §25]

Notes of Decisions

Under Former Similar Statute (Ors 73.2010)

When the maker has pos­ses­sion of the note, and the note is in evidence, a transferee of the note may maintain an ac­tion on it without pos­ses­sion of it. Scheid v. Shields, 269 Or 236, 524 P2d 1209 (1974)

When maker had pos­ses­sion of the note, plaintiff could become a transferee without delivery of the note. Scheid v. Shields, 269 Or 236, 524 P2d 1209 (1974)

A promissory note may be transferred by an assign­ment without the delivery of the note. Scheid v. Shields, 269 Or 236, 524 P2d 1209 (1974)

1 Legislative Counsel Committee, CHAPTER 73—Negotiable Instruments, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors073.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 73, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano073.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information