8.7-104 - Negotiable and nonnegotiable documents. - Virginia Statutes

§ 8.7-104. Negotiable and nonnegotiable documents.

(1) Except as otherwise provided in subsection 3, a document is negotiable:

(a) if by its terms the goods are to be delivered to bearer or to the orderof a named person; or

(b) where recognized in overseas trade, if it runs to a named person orassigns.

(2) A document other than one described in subsection 1 is nonnegotiable. Abill of lading in which it is stated that the goods are consigned to a namedperson is not made negotiable by a provision that the goods are to bedelivered only against an order in a record signed by the same or anothernamed person.

(3) A document is nonnegotiable if, at the time it is issued, the documenthas a conspicuous legend, however expressed, that it is nonnegotiable.

(Code 1950, §§ 61-7, 61-8; 1964, c. 219; 2004, c. 200.)