SENATE STATE MANAGEMENT, INVESTMENTS AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2321

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 3, 1997

      The Senate State Management, Investments and Financial Institutions Committee reports favorably and with committee amendments Assembly Bill No. 2321.

      This bill, as amended, provides that if a mortgage is evidenced by a negotiable instrument, such as a promissory note, and the instrument is issued and negotiated to the holder and the holder takes the instrument pursuant to the provisions of N.J.S.12A:3-302, the assignee shall be a holder in due course of the instrument and shall be afforded the rights and protections of a holder in due course.

COMMITTEE AMENDMENT

      The committee amended the bill to add language that requires the instrument to be issued and negotiated to the holder and the holder to take the instrument pursuant to the provisions of N.J.S.12A:3-302.