§ 80106. — Transfer without 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: 49USC80106]
TITLE 49--TRANSPORTATION
SUBTITLE X--MISCELLANEOUS
CHAPTER 801--BILLS OF LADING
Sec. 80106. Transfer without negotiation
(a) Delivery and Agreement.--The holder of a bill of lading may
transfer the bill without negotiating it by delivery and agreement to
transfer title to the bill or to the goods represented by it. Subject to
the agreement, the person to whom the bill is transferred has title to
the goods against the transferor.
(b) Compelling Indorsement.--When a negotiable bill of lading is
transferred for value by delivery without being negotiated and
indorsement of the transferor is essential for negotiation, the
transferee may compel the transferor to indorse the bill unless a
contrary intention appears. The negotiation is effective when the
indorsement is made.
(c) Effect of Notification.--(1) When a transferee notifies the
common carrier that a nonnegotiable bill of lading has been transferred
under subsection (a) of this section, the carrier is obligated directly
to the transferee for any obligations the carrier owed to the transferor
immediately before the notification. However, before the carrier is
notified, the transferee's title to the goods and right to acquire the
obligations of the carrier may be defeated by--
(A) garnishment, attachment, or execution on the goods by a
creditor of the transferor; or
(B) notice to the carrier by the transferor or a purchaser from
the transferor of a later purchase of the goods from the transferor.
(2) A common carrier has been notified under this subsection only
if--
(A) an officer or agent of the carrier, whose actual or apparent
authority includes acting on the notification, has been notified;
and
(B) the officer or agent has had time, exercising reasonable
diligence, to communicate with the agent having possession or
control of the goods.
(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1348.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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80106(a).............................. 49 App.:109 (1st sentence). Aug. 29, 1916, ch. 415, Secs. 29 (1st
sentence), 32, 33, 39 Stat. 543.
49 App.:112 (1st sentence).
80106(b).............................. 49 App.:113.
80106(c).............................. 49 App.:112 (2d-last
sentences).
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In subsection (a), the words ``without negotiating it'' are added
for clarity.
In subsection (b), the text of 49 App.:113 (last sentence) is
omitted as unnecessary because of the words ``the transferee may compel
the transferor''.
In subsection (c)(1), before clause (A), the words ``also acquires
the right to notify'' and ``by the transferor or transferee of a
straight bill'' are omitted as unnecessary because of the restatement.
