2021 US Code
Title 49 - Transportation
Subtitle X - Miscellaneous
Chapter 801 - Bills of Lading
Sec. 80106 - Transfer without negotiation

(a) Delivery and Agreement.—The holder of a bill of lading may transfer 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—

(2) A common carrier has been notified under this subsection only if—

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1348.)

In subsection (a), the words "without negotiating it" are added for clarity.

In subsection (b), the text of 49 App.:113 (last sentence) is omitted as unnecessary because of the words "the transferee may compel the transferor".

In subsection (c)(1), before clause (A), the words "also acquires the right to notify" and "by the transferor or transferee of a straight bill" are omitted as unnecessary because of the restatement.