1. The following rules apply to a negotiable tangible document of title: a. Ifthe document’s original terms run to the order of a named person, the document isnegotiated 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. b. Ifthe document’s original terms run to bearer, itisnegotiated by delivery alone. c. If the document’s original terms run to the order of a named person and itis delivered to the named person, the effect isthe same as ifthe document had been negotiated. d. Negotiation of the document after ithas been indorsed to a named person requires indorsement by the named person and delivery. e. A document is“duly negotiated” ifitis negotiatedinthe manner statedinthis subsection toa holder that purchases itin good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless itis 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. 2. The following rules apply to a negotiable electronic document of title: a. Ifthe 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. Indorsement by the named person is not required to negotiate the document. b. Ifthe 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. c. A document is duly negotiated ifitis negotiated in the manner stated inthis subsection to a holder that purchases it in good faith, without notice of any defense against or claim to iton the part of any person, and for value, unless it isestablished 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. 3. Indorsement of a nonnegotiable document of titleneither makes itnegotiable nor adds to the transferee’s rights. 4. The naming in a negotiable billof 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. [S13, §3138-a37, -a38, -a39, -a40, -a47, -b27, -b28, -b29, -b30, -b37; C24, 27, 31, 35, 39, §8272 – 8275, 8282, 9697 – 9700, 9707, 9957 – 9961, 9967; C46, 50, 54, 58, 62, §487.28 – 487.31, 487.38, 542.37 – 542.40, 542.47, 554.29 – 554.32, 554.39; C66, 71, 73, 75, 77, 79, 81, §554.7501]
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