400.7-501. Form of negotiation and requirements of "due negotiation". - Missouri Statutes

Form of negotiation and requirements of "due negotiation".

400.7-501. (1) A negotiable document of title running tothe order of a named person is negotiated by his endorsement anddelivery. After his endorsement in blank or to bearer any personcan negotiate it by delivery alone.

(2) (a) A negotiable document of title is also negotiatedby delivery alone when by its original terms it runs to bearer.

(b) When a document running to the order of a named personis delivered to him the effect is the same as if the document hadbeen negotiated.

(3) Negotiation of a negotiable document of title after ithas been endorsed to a specified person requires endorsement bythe special endorsee as well as delivery.

(4) A negotiable document of title is "duly negotiated" whenit is negotiated in the manner stated in this section to a holderwho purchases it in good faith without notice of any defenseagainst or claim to it on the part of any person and for value,unless it is established that the negotiation is not in theregular course of business or financing or involves receiving thedocument in settlement or payment of a money obligation.

(5) Endorsement of a nonnegotiable document neither makes itnegotiable nor adds to the transferee's rights.

(6) The naming in a negotiable bill of a person to benotified of the arrival of the goods does not limit thenegotiability of the bill nor constitute notice to a purchaserthereof of any interest of such person in the goods.

(L. 1963 p. 503 § 7-501)