KRS 355.3-201: Negotiation.

(1) "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.

(2) Except for negotiation by a remitter, if an instrument is payable to an ident ified

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.