Texas Business & Commerce Code
§ 7.501 — FORM OF NEGOTIATION AND REQUIREMENTS OF DUE NEGOTIATION
BC § 7.501Title 1. UNIFORM COMMERCIAL CODE · Ch. 7. DOCUMENTS OF TITLE · Art. E. WAREHOUSE RECEIPTS AND BILLS OF LADING: NEGOTIATION AND TRANSFER
Statute text
View on source(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 as well as delivery.
(5)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 receiving the document in settlement or payment of a monetary obligation.
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Legislative history
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 1, eff. September 1, 2005.