Source: L. 2006: Entire article R&RE, p. 471, § 2, effective September 1. L. 2007: (a) amended, p. 366, § 3, effective August 3.
Editor's note: This section is similar to former § 4-7-104 as it existed prior to 2006.
Prior Uniform Statutory Provision: Former Section 7-104.
Changes: Subsection (a) is revised to reflect modern style and trade practice. Subsection (b) is revised for style and medium neutrality. Subsection (c) is new.
Purposes:
A document of title is negotiable only if it satisfies this section. "Deliverable on proper indorsement and surrender of this receipt" will not render a document negotiable. Bailees often include such provisions as a means of insuring return of nonnegotiable receipts for record purposes. Such language may be regarded as insistence by the bailee upon a particular kind of receipt in connection with delivery of the goods. Subsection (a) makes it clear that a document is not negotiable which provides for delivery to order or bearer only if written instructions to that effect are given by a named person. Either tangible or electronic documents of title may be negotiable if the document meets the requirement of this section.
Cross Reference:
Section 7-501 and 7-502.
Definitional Cross References:
"Bearer". Section 1-201.
"Bill of lading". Section 1-201.
"Delivery". Section 1-201.
"Document of title". Section 1-201.
"Person". Section 1-201.
"Sign". Section 7-102.
"Warehouse receipt". Section 1-201.