49 U.S.C. § 80106 — Transfer without negotiation

(a) Delivery and Agreement. A bill holder may transfer the bill without negotiating it by delivering it and agreeing to transfer title to the bill or represented goods. Subject to that agreement, the transferee has title to the goods against the transferor.

(b) Compelling Indorsement. If a negotiable bill is delivered for value without negotiation and the transferor’s indorsement is needed for negotiation, the transferee may require the transferor to indorse it unless the parties show a contrary intent. Negotiation takes effect when indorsed.

(c) Effect of Notification. (1) When a transferee tells the carrier that a nonnegotiable bill was transferred under subsection (a), the carrier becomes directly obligated to the transferee for obligations owed to the transferor immediately before notice. Before notice, the transferee’s title and right to obtain those obligations may be defeated by a creditor’s garnishment, attachment, or execution on the goods, or by notice from the transferor or a buyer from the transferor of a later purchase. (2) Notice counts only if an authorized or apparently authorized carrier officer or agent receives it and has enough time, using reasonable diligence, to tell the agent possessing or controlling the goods.