If a negotiable order instrument is transferred to another party without an endorsement, the instrument has been:

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If a negotiable order instrument is transferred to another party without an endorsement, it is considered an assignment, which is the transfer of ownership of the instrument without the transfer of holder's rights. The instrument can still be legally enforced by the assignor, whereas in a negotiation, the transferee becomes the holder of the instrument and has the right to enforce it. Obtaining an instrument by fraud does not depend on whether it was endorsed or not, and the validity of the instrument would be determined based on the circumstances of the fraud.

If a Negotiable Order Instrument Is Transferred to Another Party