If the thief of a stolen bearer instrument delivers it to an innocent, third party, negotiation of the item is complete.

Question

Quizplus · Accepted Answer

Bearer instruments are negotiated by delivery alone, so if a thief delivers a stolen bearer instrument to an innocent third party, the negotiation is considered complete. The innocent party, assuming they gave value and took the instrument in good faith without knowledge of the theft, can become a holder in due course.

If the Thief of a Stolen Bearer Instrument Delivers It