Page:United States Statutes at Large Volume 108 Part 2.djvu/632

 108 STAT. 1348 PUBLIC LAW 103-272—JULY 5, 1994 (A) the person negotiating the bill had the ability to convey to a purchaser in good faith for value; and (B) the consignor and consignee had the ability to convey to such a purchaser; and (2) 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. (b) SUPERIORITY OF RIGHTS.— 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. (c) MORTGAGEE AND LIEN HOLDER RIGHTS NOT AFFECTED. — 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. § 80106. Transfer without negotiation (a) DELIVERY AND AGREEMENT. —The holder of a bill of lading may trsinsfer the bill without negotiating it by delivery and agreement to transfer title to the bill or to the goods represented by it. Subject to the agreement, the person to whom the bill is transferred has title to the goods against the transferor. (b) COMPELLING INDORSEMENT. —When a negotiable bill of lading is transferred for value by delivery without being negotiated and indorsement of the transferor is essential for negotiation, the transferee may compel the transferor to indorse the bill unless a contrary intention appears. The negotiation is effective when the indorsement is made. (c) EFFECT OF NOTIFICATION. —(1) When a transferee notifies the common carrier that a nonnegotiable bill of lading has been transferred under subsection (a) of this section, the carrier is obligated directly to the transferee for any obligations the carrier owed to the transferor immediately before the notification. However, before the carrier is notified, the transferee's title to the goods and right to acquire the obligations of the carrier may be defeated by- (A) garnishment, attachment, or execution on the goods by a creditor of the transferor; or (B) notice to the carrier by the transferor or a purchaser from the transferor of a later purchase of the goods from the transferor. (2) A common carrier has been notified under this subsection only if— (A) an officer or agent of the carrier, whose actual or apparent authority includes acting on the notification, has been notified; and (B) the officer or agent has had time, exercising reasonable diligence, to communicate with the agent having possession or control of the goods.

�