Ballengee v. New Mexico Federal Savings & Loan Ass'n

(specially concurring).

I concur in the foregoing opinion even though the result it reaches, as one commentator states, “seems questionable.” See 4 W. Hawkland, UCC Series § 3-201:09 at 285 (1984):

[I]f [an] instrument is payable to order, ... the transferee does not become a holder until the instrument has been properly indorsed; until then, he is a mere transferee. In order to become a holder in due course, he must be without notice and in good faith both at time of acquiring holder status and at the time of giving value. Since holder status is not acquired until the instrument has been…