Page:United States Statutes at Large Volume 50 Part 1.djvu/62

75TH CONGRESS, 1ST SESSION-CH . 43-MARCH 17, 1937 SEC . 30 . NEGOTIABLE DOCUMENTS OF TITLE MARKED "NOT NEGOTI A- BLE " .-If a document of title which contains an undertaking by a carrier, warehouseman, or other bailee to deliver the goods to the bearer, to a specified person or order, or to the order of a specified person, or which contains words of like import, has placed upon it the words "not negotiable", "nonnegotiable", or the like, such a docu- ment may nevertheless be negotiated by the holder and is a negotiable document of title Within the meaning of this Act . But nothing in this Act containe d shall be construe d as limiting or de fining the effect upon the obligations of the carrier, warehouseman, or other bailee issui ng a docum ent of titl e or placi ng th ereon the w ords "not negotiable", "nonnegotiable", or the like . SEC . 31 . TRANSFER OF NONNEGOTIABLE DOCUMENTS .-A document of title which is not in such form that it can be negotiated by delivery may be transferred by the holder by delivery to a purchaser or donee . A nonnegotiable document cannot be negotiated and the endorsement of such a document gives the transferee no additional right. SEC . 32 . WHO MAY NEGOTIATE A DOCUMENT .-A negotiable document may be negotiated by any person in possession of the same, however such poss ession may have been acquired i f, by the terms of t he docu- ment, the bailee issuing it undertakes to deliver the goods to the order of such person, or if at the time of negotiation the document is in such form that it may be negotiated by delivery . SEC . 33. RIGHTS OF PERSON TO WHOM DOCUMENT HAS BEEN NEGOTI- ATED.-A person to whom a negotiable document of title has been duly negotiated acquires thereby- (a ) Such tit le to the goods as th e person n egotiating the docum ent to him had or had abi lity to co nvey to a purchaser in good fa ith 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 . 3 4. RIGHTS OF P ERSON TO WHOM DOCUMENT HAS BEEN TRANS- FERRED .-A person to whom a document of title has been transferred, but not n egotiated, acquires thereby, as against t he transfe ror, the title to the goods, subject to the terms of any agreement with the transfero r . If the document is nonnegotiable, such person also acquires the right to notify the bailee who issued the document of the transfer thereof, and thereb y to acqui re the dire ct obligat ion of suc h bailee to hold possession of the goods for him according to the terms of the docu ment . Prior to the notification of such bailee by the transferor or trans- feree of a nonnegotiable document of title, the title of the transferee to the goods and the right to acquire the obligation of such bailee may be defeat ed by the levy of an attachment or execut ion upon t he 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 . 35 . TRANSFER OF NEGOTIABLE DOCUMENT WITHOUT ENDOR SE- M E NT . -Where a n egotiable document o f title is transferr ed for valu e by delivery, and the endorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to endorse the document unless a contrary intention appears . The negotiation shall take effect as of the time When the endorsement is actually made . 37 Negotiable docu- ments of title marked "Not negotiable." Transfer of nonne- gotia ble docu ments . Who may negotiate a document . Ri ghts of pe rson to whom document has been negotiated. Rights of person to whom document has been transferr ed . Transfer of negoti- able document with . out endorsement .