§ 6A-7-501 Form of negotiation andrequirements of due negotiation. – (a) The following rules apply to a negotiable tangible document of title:
(1) If the document's original terms run to the order of anamed person, the document is negotiated by the named person's indorsement anddelivery. After the named person's indorsement in blank or to bearer, anyperson may negotiate the document by delivery alone.
(2) If the document's original terms run to bearer, it isnegotiated by delivery alone.
(3) If the document's original terms run to the order of anamed person and it is delivered to the named person, the effect is the same asif the document had been negotiated.
(4) Negotiation of the document after it has been indorsed toa named person requires indorsement by the named person and delivery.
(5) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves receiving the document insettlement or payment of a monetary obligation.
(b) The following rules apply to a negotiable electronicdocument of title:
(1) If the document's original terms run to the order of anamed person or to bearer, the document is negotiated by delivery of thedocument to another person. Indorsement by the named person is not required tonegotiate the document.
(2) If the document's original terms run to the order of anamed person and the named person has control of the document, the effect isthe same as if the document had been negotiated.
(3) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves taking delivery of thedocument in settlement or payment of a monetary obligation.
(c) Indorsement of a nonnegotiable document of title neithermakes it negotiable nor adds to the transferee's rights.
(d) The naming in a negotiable bill of lading of a person tobe notified of the arrival of the goods does not limit the negotiability of thebill or constitute notice to a purchaser of the bill of any interest of thatperson in the goods.
§ 6A-7-501 Form of negotiation andrequirements of due negotiation. – (a) The following rules apply to a negotiable tangible document of title:
(1) If the document's original terms run to the order of anamed person, the document is negotiated by the named person's indorsement anddelivery. After the named person's indorsement in blank or to bearer, anyperson may negotiate the document by delivery alone.
(2) If the document's original terms run to bearer, it isnegotiated by delivery alone.
(3) If the document's original terms run to the order of anamed person and it is delivered to the named person, the effect is the same asif the document had been negotiated.
(4) Negotiation of the document after it has been indorsed toa named person requires indorsement by the named person and delivery.
(5) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves receiving the document insettlement or payment of a monetary obligation.
(b) The following rules apply to a negotiable electronicdocument of title:
(1) If the document's original terms run to the order of anamed person or to bearer, the document is negotiated by delivery of thedocument to another person. Indorsement by the named person is not required tonegotiate the document.
(2) If the document's original terms run to the order of anamed person and the named person has control of the document, the effect isthe same as if the document had been negotiated.
(3) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves taking delivery of thedocument in settlement or payment of a monetary obligation.
(c) Indorsement of a nonnegotiable document of title neithermakes it negotiable nor adds to the transferee's rights.
(d) The naming in a negotiable bill of lading of a person tobe notified of the arrival of the goods does not limit the negotiability of thebill or constitute notice to a purchaser of the bill of any interest of thatperson in the goods.
§ 6A-7-501 Form of negotiation andrequirements of due negotiation. – (a) The following rules apply to a negotiable tangible document of title:
(1) If the document's original terms run to the order of anamed person, the document is negotiated by the named person's indorsement anddelivery. After the named person's indorsement in blank or to bearer, anyperson may negotiate the document by delivery alone.
(2) If the document's original terms run to bearer, it isnegotiated by delivery alone.
(3) If the document's original terms run to the order of anamed person and it is delivered to the named person, the effect is the same asif the document had been negotiated.
(4) Negotiation of the document after it has been indorsed toa named person requires indorsement by the named person and delivery.
(5) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves receiving the document insettlement or payment of a monetary obligation.
(b) The following rules apply to a negotiable electronicdocument of title:
(1) If the document's original terms run to the order of anamed person or to bearer, the document is negotiated by delivery of thedocument to another person. Indorsement by the named person is not required tonegotiate the document.
(2) If the document's original terms run to the order of anamed person and the named person has control of the document, the effect isthe same as if the document had been negotiated.
(3) A document is duly negotiated if it is negotiated in themanner 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 theregular course of business or financing or involves taking delivery of thedocument in settlement or payment of a monetary obligation.
(c) Indorsement of a nonnegotiable document of title neithermakes it negotiable nor adds to the transferee's rights.
(d) The naming in a negotiable bill of lading of a person tobe notified of the arrival of the goods does not limit the negotiability of thebill or constitute notice to a purchaser of the bill of any interest of thatperson in the goods.
