Effective: June 29, 2011
Latest Legislation: House Bill 9 - 129th General Assembly
Form of negotiation and requirements of due negotiation [UCC 7-501]
(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 indorsement and delivery. After the named person's indorsement in blank or to bearer, any person may negotiate the document by delivery alone.
(2) If the 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 indorsed to a named person requires indorsement by the named person and delivery.
(5) A document is duly negotiated if it is negotiated in the manner stated in this division 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 receiving the document in settlement or payment of a monetary 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. Indorsement 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 division 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) Indorsement 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.
Structure Ohio Revised Code
Title 13 | Commercial Transactions
Chapter 1307 | Documents of Title
Section 1307.101 | Short Title - Ucc 7-101.
Section 1307.102 | Definitions and Index of Definitions - Ucc 7-102.
Section 1307.103 | Relation of Chapter 1307. of the Revised Code to Treaty or Statute - Ucc 7-103.
Section 1307.104 | Negotiable and Nonnegotiable Document of Title - Ucc 7-104.
Section 1307.105 | Reissuance in Alternative Medium - Ucc 7-105.
Section 1307.106 | Control of Electronic Document of Title - Ucc 7-106.
Section 1307.201 | Person That May Issue a Warehouse Receipt; Storage Under Bond - Ucc 7-201.
Section 1307.202 | Form of Warehouse Receipt; Effect of Omission - Ucc 7-202.
Section 1307.203 | Liability for Nonreceipt or Misdescription - Ucc 7-203.
Section 1307.204 | Duty of Care; Contractual Limitation of Warehouse's Liability - Ucc 7-204.
Section 1307.205 | Title Under Warehouse Receipt Defeated in Certain Cases - Ucc 7-205.
Section 1307.206 | Termination of Storage at Warehouse's Option - Ucc 7-206.
Section 1307.207 | Goods Must Be Kept Separate; Fungible Goods - Ucc 7-207.
Section 1307.208 | Altered Warehouse Receipts - Ucc 7-208.
Section 1307.209 | Lien of Warehouse - Ucc 7-209.
Section 1307.210 | Enforcement of Warehouse's Lien - Ucc 7-210.
Section 1307.302 | Through Bills of Lading and Similar Documents of Title - Ucc 7-302.
Section 1307.303 | Diversion; Reconsignment; Change of Instructions - Ucc 7-303.
Section 1307.304 | Tangible Bills of Lading in a Set - Ucc 7-304.
Section 1307.305 | Destination Bills - Ucc 7-305.
Section 1307.306 | Altered Bills of Lading - Ucc 7-306.
Section 1307.307 | Lien of Carrier -Ucc 7-307.
Section 1307.308 | Enforcement of Carrier's Lien -Ucc 7-308.
Section 1307.309 | Duty of Care; Contractual Limitation of Carrier's Liability -Ucc 7-309.
Section 1307.401 | Irregularities in Issue of Receipt or Bill or Conduct of Issuer -Ucc 7-401.
Section 1307.402 | Duplicate Document of Title; Overissue - Ucc 7-402.
Section 1307.403 | Obligation of Bailee to Deliver; Excuse - Ucc 7-403.
Section 1307.404 | No Liability for Good-Faith Delivery Pursuant to Document of Title - Ucc 7-404.
Section 1307.501 | Form of Negotiation and Requirements of Due Negotiation - Ucc 7-501.
Section 1307.502 | Rights Acquired by Due Negotiation - Ucc 7-502.
Section 1307.503 | Document of Title to Goods Defeated in Certain Cases - Ucc 7-503.
Section 1307.505 | Indorser Not Guarantor for Other Parties - Ucc 7-505.
Section 1307.506 | Delivery Without Indorsement: Right to Compel Indorsement - Ucc 7-506.
Section 1307.507 | Warranties on Negotiation or Delivery of Document of Title - Ucc 7-507.
Section 1307.508 | Warranties of Collecting Bank as to Documents of Title - Ucc 7-508.
Section 1307.509 | Adequate Compliance With Commercial Contract - Ucc 7-509.
Section 1307.601 | Lost, Stolen, or Destroyed Documents of Title - Ucc 7-601.
Section 1307.603 | Conflicting Claims; Interpleader - Ucc 7-603.