§ 554.7501

554.7501 Form of negotiation and requirements of due negotiation. 1. The following rules apply to a negotiable tangible document of title:a. 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’sindorsement in blank or to bearer, any person may negotiate the document by delivery alone. b. If the document’s original terms run to bearer, it is negotiated by delivery alone.c. 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. d. Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery. e. 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 iton the part of any person, and for value, unless it is established that the negotiation is not inthe regular course of business or financing or involves receiving the document in settlementor payment of a monetary

any person, and for value, unless it is established that the negotiation is not inthe regular course of business or financing or involves receiving the document in settlementor payment of a monetary obligation. 2. The following rules apply to a negotiable electronic document of title:a. If the document’s original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Indorsement by thenamed person is not required to negotiate the document. b. If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had beennegotiated. c. 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 toit on the part of any person, and for value, unless it is established that the negotiation is notin the regular course of business or financing or involves taking delivery of the document insettlement or payment of a monetary obligation. 3.

ue, unless it is established that the negotiation is notin the regular course of business or financing or involves taking delivery of the document insettlement or payment of a monetary obligation. 3. Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights. 4. The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the billof any interest of that person in the goods. [S13, §3138-a37, -a38, -a39, -a40, -a47, -b27, -b28, -b29, -b30, -b37; C24, 27, 31, 35, 39, §8272 – 8275, 8282, 9697 – 9700, 9707, 9957 – 9961, 9967; C46, 50, 54, 58, 62, §487.28 –487.31, 487.38, 542.37 – 542.40, 542.47, 554.29 – 554.32, 554.39; C66, 71, 73, 75, 77, 79, 81,§554.7501] 2007 Acts, ch 30, §29, 45, 46Referred to in §554D.118 Sat Dec 23 01:57:58 2023 Iowa Code 2024, Section 554.7501 (26, 0)