---
title: O.C.G.A. § 11-3-201. Negotiation.
collection: code
id: 11-3-201
cite_as: O.C.G.A. § 11-3-201 (2025)
canonical_url: https://georgiacommons.org/code/11-3-201
md_url: https://georgiacommons.org/code/11-3-201.md
text_url: https://georgiacommons.org/code/11-3-201/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=365
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/11-3.md
previous: https://georgiacommons.org/code/11-3-119.md
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index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: COMMERCIAL CODE / NEGOTIABLE INSTRUMENTS / NEGOTIATION, TRANSFER, AND INDORSEMENT
---

# O.C.G.A. § 11-3-201. Negotiation.

(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.

## History

Code 1981, § 11-3-201, enacted by Ga. L. 1996, p. 1306, § 3.

## Law Reviews

For comment on Pendley v. Credit Equip. Corp., 92 Ga. App. 658, 89 S.E.2d 567 (1955), see 18 Ga. B.J. 495 (1956).

For article discussing judicial activism in cases involving claims and defenses under the Uniform Commercial Code, see 17 Ga. L. Rev. 569 (1983).