(a)The following rules apply to a negotiable tangible
document of title:
(i)If the document's original terms run to the order
of a named person, the document is negotiated by the named
person's endorsement and delivery. After the named person's
endorsement in blank or to bearer, any person may negotiate the
document by delivery alone;
(ii)If the document's original terms run to bearer,
it is negotiated by delivery alone;
(iii)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;
(iv)Negotiation of the document after it has been
endorsed to a named person requires endorsement by the named
person and delivery;
(v)A document is duly negotiated if it is negotiated
in the
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(a) The following rules apply to a negotiable tangible
document of title:
(i) If the document's original terms run to the order
of a named person, the document is negotiated by the named
person's endorsement and delivery. After the named person's
endorsement in blank or to bearer, any person may negotiate the
document by delivery alone;
(ii) If the document's original terms run to bearer,
it is negotiated by delivery alone;
(iii) 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;
(iv) Negotiation of the document after it has been
endorsed to a named person requires endorsement by the named
person and delivery;
(v) 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) The following rules apply to a negotiable electronic
document of title:
(i) If the document's original terms run to the order
of a named person or to bearer, the document is negotiated by
delivery of the document to another person. Endorsement by the
named person is not required to negotiate the document;
(ii) 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;
(iii) 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) Endorsement of a nonnegotiable document of title
neither makes it negotiable nor adds to the transferee's rights.
(d) 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.