A transfer by negotiation can make it possible for a holder to receive more rights in the instrument than its prior possessor had.

Question

Quizplus · Accepted Answer

This is true because a transfer by negotiation involves the transfer of all rights in the instrument, including any additional rights that may have been acquired through previous negotiations, endorsements, or other transactions. As a result, the new holder may have more rights in the instrument than the previous possessor.

A Transfer by Negotiation Can Make It Possible for a Holder