49 U.S.C. § 80105 — Title and rights affected by negotiation
submitted 32 years ago by Pub. L. 103-272 to r/title-49-TRANSPORTATION · 261 words · no verdicts yet
This section describes what title and rights pass when a negotiable bill of lading is negotiated.
(a) Title. When a negotiable bill is negotiated—(1) the recipient gets title to goods that the negotiator, and also the consignor and consignee, had power to convey to a good-faith buyer for value; and (2) the issuing carrier becomes directly obligated to the recipient to hold the goods under the bill’s terms, as if it had issued the bill to that person.
(b) Superiority of Rights. When a person receives a negotiable bill for value and in good faith, that person’s right to the goods is superior to a seller’s lien or right to stop transportation, whether negotiation occurred before or after the carrier learned of the seller’s claim. The carrier may deliver to an unpaid seller only after the bill is surrendered for cancellation.
(c) Mortgagee and Lien Holder Rights Not Affected. Except for subsection (b), this chapter does not limit a mortgagee’s or lienholder’s right against a person who bought the goods for value and in good faith from the owner and obtained possession immediately before delivery to the carrier.
When a negotiable bill of lading is negotiated—
the person to whom it is negotiated acquires the title to the goods that—
the person negotiating the bill had the ability to convey to a purchaser in good faith for value; and
the consignor and consignee had the ability to convey to such a purchaser; and
the common carrier issuing the bill becomes obligated directly to the person to whom the bill is negotiated to hold possession of the goods under the terms of the bill the same as if the carrier had issued the bill to that person.
When a negotiable bill of lading is negotiated to a person for value in good faith, that person’s right to the goods for which the bill was issued is superior to a seller’s lien or to a right to stop the transportation of the goods. This subsection applies whether the negotiation is made before or after the common carrier issuing the bill receives notice of the seller’s claim. The carrier may deliver the goods to an unpaid seller only if the bill first is surrendered for cancellation.
Except as provided in subsection (b) of this section, this chapter does not limit a right of a mortgagee or lien holder having a mortgage or lien on goods against a person that purchased for value in good faith from the owner, and got possession of the goods immediately before delivery to the common carrier.
Source credit: (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1347.)
- 1994Enacted · Pub. L. 103-272 · 108 Stat. 1347
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-272 on 1994-07-05.
all 0 arguments · sorted by: best
no arguments yet — make the first case