The Validity of Transfer of Negotiable Instrument after Maturity or Protest

Despite the widespread use of negotiable instruments in ordinary and commercial transactions, legal literature has less noted to the issue of validity and consequences of the transfer of negotiable instruments after maturity. In this paper, in addition to a comparative study of the various approaches in regulations, it also has been examined and criticized the existing legal theories in regard. These theories sometimes forbid the transfer the document after maturity whether it has been done by endorsement or delivery. It has sometimes been considered as an ordinary (noncommercial) transfer. Finally, one tries to say that this transfer just has some of the effects of the transfer of such instruments. Based on commercial customs, lack of any prohibition in regulation, existence of some indication on regulation, this essay shows that in Iranian legal system citation to the weakness and instability of the instrument and thus the holder's reliance on the transferor's credit is not compatible with ordinary willingness of parties to instrument. Apart from this reason, such deduction denies the most of the features of a protested negotiable instrument in favor of its new holder.