CHAPTER 75 WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER Sec. 7501. Form of negotiation and requirements of due negotiation. 7502. Rights acquired by due negotiation. 7503. Document of title to goods defeated in certain cases. 7504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery. 7505. Indorser not guarantor for other parties. 7506. Delivery without indorsement: right to compel indorsement. 7507. Warranties on negotiation or delivery of document of title. 7508. Warranties of collecting bank as to documents of title. 7509. Adequate compliance with commercial contract Enactment. Chapter 75 was added April 16, 2008, P.L.57, No.13, effective in 60 days. Prior Provisions. Former Chapter 75, which related to the same subject matter, was added November 1, 1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60 days. § 7501. Form of negotiation and requirements of duenegotiation.(a) Tangible documents.--The following rules apply to a negotiable tangible document of title: (1) If the document's original terms run to the order of a named person, the document is negotiated by the named person's indorsement and delivery. After the named person's indorsement in blank or to bearer, any person may negotiate the document by delivery alone. (2) If the document's original terms run to the bearer, it is negotiated by delivery alone. (3) If the document's original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated. (4) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person as well as delivery. (5) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation. (b) Electronic documents.--The following rules apply to a negotiable electronic document of title: (1) If the document's original terms run to the order of a named person or to the bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document. (2) If the document's original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated. (3) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation. (c) Nonnegotiable documents.--Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee's rights. (d) Notice of interest.--The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
CHAPTER 75 WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER Sec. 7501. Form of negotiation and requirements of due negotiation. 7502. Rights acquired by due negotiation. 7503. Document of title to goods defeated in certain cases. 7504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery. 7505. Indorser not guarantor for other parties. 7506. Delivery without indorsement: right to compel indorsement. 7507. Warranties on negotiation or delivery of document of title. 7508. Warranties of collecting bank as to documents of title. 7509. Adequate compliance with commercial contract Enactment. Chapter 75 was added April 16, 2008, P.L.57, No.13, effective in 60 days. Prior Provisions. Former Chapter 75, which related to the same subject matter, was added November 1, 1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60 days. § 7501. Form of negotiation and requirements of duenegotiation.(a) Tangible documents.--The following rules apply to a negotiable tangible document of title: (1) If the document's original terms run to the order of a named person, the document is negotiated by the named person's indorsement and delivery. After the named person's indorsement in blank or to bearer, any person may negotiate the document by delivery alone. (2) If the document's original terms run to the bearer, it is negotiated by delivery alone. (3) If the document's original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated. (4) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person as well as delivery. (5) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation. (b) Electronic documents.--The following rules apply to a negotiable electronic document of title: (1) If the document's original terms run to the order of a named person or to the bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document. (2) If the document's original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated. (3) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation. (c) Nonnegotiable documents.--Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee's rights. (d) Notice of interest.--The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
CHAPTER 75 WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER Sec. 7501. Form of negotiation and requirements of due negotiation. 7502. Rights acquired by due negotiation. 7503. Document of title to goods defeated in certain cases. 7504. Rights acquired in absence of due negotiation; effect of diversion; stoppage of delivery. 7505. Indorser not guarantor for other parties. 7506. Delivery without indorsement: right to compel indorsement. 7507. Warranties on negotiation or delivery of document of title. 7508. Warranties of collecting bank as to documents of title. 7509. Adequate compliance with commercial contract Enactment. Chapter 75 was added April 16, 2008, P.L.57, No.13, effective in 60 days. Prior Provisions. Former Chapter 75, which related to the same subject matter, was added November 1, 1979, P.L.255, No.86, and repealed April 16, 2008, P.L.57, No.13, effective in 60 days. § 7501. Form of negotiation and requirements of duenegotiation.(a) Tangible documents.--The following rules apply to a negotiable tangible document of title: (1) If the document's original terms run to the order of a named person, the document is negotiated by the named person's indorsement and delivery. After the named person's indorsement in blank or to bearer, any person may negotiate the document by delivery alone. (2) If the document's original terms run to the bearer, it is negotiated by delivery alone. (3) If the document's original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated. (4) Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person as well as delivery. (5) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation. (b) Electronic documents.--The following rules apply to a negotiable electronic document of title: (1) If the document's original terms run to the order of a named person or to the bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document. (2) If the document's original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated. (3) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation. (c) Nonnegotiable documents.--Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee's rights. (d) Notice of interest.--The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
