Indiana Code
Chapter 7. Documents of Title
26-1-7-501. Form of Negotiation and Requirements of "Due Negotiation"

Sec. 501. (a) The following rules apply to a negotiable tangible document of title:
(1) 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.
(2) If the negotiable document's original terms run to bearer, it is negotiated by delivery alone.
(3) 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.
(4) Negotiation of the document after it has been endorsed to a named person requires endorsement and delivery.
(5) A negotiable document of title is "duly negotiated" when it is negotiated in the manner stated in this section to a holder who 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 money obligation.
(b) The following rules apply to a negotiable electronic document of title:
(1) 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.
(2) 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.
(3) 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.
Formerly: Acts 1963, c.317, s.7-501. As amended by P.L.143-2007, SEC.52.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 7. Documents of Title

26-1-7-101. Short Title

26-1-7-102. Definitions and Index of Definitions

26-1-7-103. Relation of Chapter to Other Laws

26-1-7-104. Negotiable and Nonnegotiable Warehouse Receipt, Bill of Lading, and Other Document of Title

26-1-7-105. Tangible Substitute for Electronic Document of Title

26-1-7-106. Control of Electronic Document of Title

26-1-7-201. Who May Issue a Warehouse Receipt; Storage Under Government Bond

26-1-7-202. Form of Warehouse Receipt; Essential Terms; Optional Terms

26-1-7-203. Liability for Nonreceipt or Misdescription

26-1-7-204. Duty of Care; Contractual Limitation of Warehouse's Liability

26-1-7-205. Title Under Warehouse Receipt Defeated in Certain Cases

26-1-7-206. Termination of Storage at Warehouse's Option

26-1-7-207. Goods Must Be Kept Separate; Fungible Goods

26-1-7-208. Altered Warehouse Receipts

26-1-7-209. Warehouse Lien

26-1-7-210. Enforcement of Warehouse's Lien

26-1-7-301. Liability for Nonreceipt or Misdescription; "Said to Contain"; "Shipper's Load and Count"; Improper Handling

26-1-7-302. Through Bills of Lading and Similar Documents

26-1-7-303. Diversion; Reconsignment; Change of Instructions

26-1-7-304. Bills of Lading in a Set

26-1-7-305. Destination Bills

26-1-7-306. Altered Bills of Lading

26-1-7-307. Lien of Carrier

26-1-7-308. Enforcement of Carrier's Lien

26-1-7-309. Duty of Care; Contractual Limitation of Carrier's Liability

26-1-7-401. Irregularities in Issue of Receipt or Bill or Conduct of Issuer

26-1-7-402. Duplicate Receipt or Bill; Overissue

26-1-7-403. Obligation of Warehouse or Carrier to Deliver; Excuse

26-1-7-404. No Liability for Good Faith Delivery Upon Receipt or Bill

26-1-7-501. Form of Negotiation and Requirements of "Due Negotiation"

26-1-7-502. Rights Acquired by Due Negotiation

26-1-7-503. Form of Negotiation and Requirements of "Due Negotiation"

26-1-7-504. Rights Acquired in the Absence of Due Negotiation; Effect of Diversion; Seller's Stoppage of Delivery

26-1-7-505. Endorser Not a Guarantor for Other Parties

26-1-7-506. Delivery Without Endorsement; Right to Compel Endorsement

26-1-7-507. Warranties on Negotiation or Transfer of Receipt or Bill

26-1-7-508. Warranties of Collecting Bank as to Documents

26-1-7-509. Receipt or Bill; When Adequate to Comply With Commercial Contract

26-1-7-601. Lost and Missing Documents

26-1-7-602. Attachment of Goods Covered by a Negotiable Document

26-1-7-603. Conflicting Claims; Interpleader