Page:United States Statutes at Large Volume 47 Part 1.djvu/1235

 72d C ONGRESS. SESS. II. CH. 128. FEBRUARY 27, 1933. 1211 But nothing in this chapter contained shall be construed as limiting or defining the effect upon the obligation s of the c arrier, wa rehouse- man, or other bailee issuin g a document of titl e of placing thereon the words "not negotiable," "nonnegotiable," or the like. SEC. 627 . TRANSFER OF NONNEGOTIABLE DOCUMENTS .-A document tiableadocuments nego- of t itle which is not in such form that it c an be nego tiated by deliv- ery may be transferred by the holder by delivery to a purchaser or donee. A nonnegotiable document can not be negotiated, and the indorsement of such a document gives the transferee no addi- tional right. SEC. 628. WHO MAY NEGOTIATE A DOCUMENT.-A negotiable docu- Who my negotiate ment of title may be negotiated- a document. a) By the owner thereof, or b) By any p erson to whom the possession or custo dy of the document has been entrusted by the owner, if, by the terms of the document the bailee issuing the document undertakes to deliver the goods to the order of the person to whom the possession or custody of the document has been entrusted, or if at the time of such entrusting the doemnent is in such form that it may be negotiated by delivery. SEC. 629. RIGHTS OF PERSON TO WHO M DOCUMENT HAS BEEN NEGO- Rights of person to TIATED .-A person to whom a negotiable document of title has been whom negotiated' duly negotiated acquires thereby- (a) Such title to the goods as the person negotiating the docu- ment to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as the person to whose order the goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in good faith for value, and (b) The direct obligation of the bailee issuing the document to hold possession of the goods for him according to the terms of the document as fully as if such bailee had contracted directly with him. SEC. 630. RIGHTS OF PE RSON TO WHOM DOCU MENT HAS BE EN TR AMS- To whom trans- FFxu En. -A perso n to whom a document of title has been t ransferred, (erred' but not negotiated, acquires thereby, as against the transferor, the title to the goods, subject to the terms of any agreement with the transferor . If the document is nonnegotiable, such person also acquires the right to notify the bailee who issued the document of the transfer thereof, and thereby to acquire the direct obligation of such bailee to hold possession of the goods for him according to the terms of the document . Prior to the notification of such bailee by the transferor or transferee of a nonnegotiable document of title, the title of the transferee to the goods and the right to acquire the obligation of such ba ilee may be defeated by the levy of an a ttach- ment of execution upon the goods by a creditor of the transferor, or by a notification to such bailee by the transferor_ or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. SEC. 631 . TRANSFER OF NEGOTIABLE DOCUMENT W ITH OUT INDORSE- Transfer without in- MENT.-Where a negotiable document of title is transferred for dorsement . value by delivery, and the indorsement of the transferor is essential for negoti ation, the transfere e acquires a right a gainst the transfero r to compel him to indorse the document unless a contrary intention appears. The negot iation shall take ef fect as of the time when the indorsement is actually made. SEC. 632. WARRANTIES ON SALE OF DOCUMENTS .-A person who for warranties. valu e negotiates or tran sfers a document of title by indorsement or