§ 80105. — Title and rights affected by negotiation.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 49USC80105]
TITLE 49--TRANSPORTATION
SUBTITLE X--MISCELLANEOUS
CHAPTER 801--BILLS OF LADING
Sec. 80105. Title and rights affected by negotiation
(a) Title.--When a negotiable bill of lading is negotiated--
(1) the person to whom it is negotiated acquires the title to
the goods that--
(A) the person negotiating the bill had the ability to
convey to a purchaser in good faith for value; and
(B) the consignor and consignee had the ability to convey to
such a purchaser; and
(2) the common carrier issuing the bill becomes obligated
directly to the person to whom the bill is negotiated to hold
possession of the goods under the terms of the bill the same as if
the carrier had issued the bill to that person.
(b) Superiority of Rights.--When a negotiable bill of lading is
negotiated to a person for value in good faith, that person's right to
the goods for which the bill was issued is superior to a seller's lien
or to a right to stop the transportation of the goods. This subsection
applies whether the negotiation is made before or after the common
carrier issuing the bill receives notice of the seller's claim. The
carrier may deliver the goods to an unpaid seller only if the bill first
is surrendered for cancellation.
(c) Mortgagee and Lien Holder Rights Not Affected.--Except as
provided in subsection (b) of this section, this chapter does not limit
a right of a mortgagee or lien holder having a mortgage or lien on goods
against a person that purchased for value in good faith from the owner,
and got possession of the goods immediately before delivery to the
common carrier.
(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1347.)
Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
80105(a).............................. 49 App.:111. Aug. 29, 1916, ch. 415, Secs. 31, 39,
40, 39 Stat. 543, 544.
80105(b).............................. 49 App.:119.
80105(c).............................. 49 App.:120.
----------------------------------------------------------------------------------------------------------------
In subsection (a)(1), before subclause (A), the word ``duly'' is
omitted as surplus.
In subsection (b), the words ``right . . . is superior'' are
substituted for ``no . . . shall defeat the rights of'' for clarity. The
words ``right to stop the transportation'' are substituted for ``right
of stoppage in transitu'' for clarity.
In subsection (c), the word ``remedies'' is omitted as being
included in ``right''. The words ``whose mortgage or lien on goods would
be valid, apart from this chapter'' are omitted as unnecessary because
of the restatement. The words ``which are subject to the mortgage or
lien'' are omitted as unnecessary.
