49 U.S. Code § 80105 - Title and rights affected by negotiation
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(a) Title.— When a negotiable bill of lading is negotiated—
(1) the person to whom it is negotiated acquires the title to the goods that—
(A) the person negotiating the bill had the ability to convey to a purchaser in good faith for value; and
(b) Superiority of Rights.— When a negotiable bill of lading is negotiated to a person for value in good faith, that person’s right to the goods for which the bill was issued is superior to a seller’s lien or to a right to stop the transportation of the goods. This subsection applies whether the negotiation is made before or after the common carrier issuing the bill receives notice of the seller’s claim. The carrier may deliver the goods to an unpaid seller only if the bill first is surrendered for cancellation.
(c) Mortgagee and Lien Holder Rights Not Affected.— Except as provided in subsection (b) of this section, this chapter does not limit a right of a mortgagee or lien holder having a mortgage or lien on goods against a person that purchased for value in good faith from the owner, and got possession of the goods immediately before delivery to the common carrier.
Source(Pub. L. 103–272, § 1(e),July 5, 1994, 108 Stat. 1347.)
|Revised Section||Source (U.S. Code)||Source (Statutes at Large)|
|Aug. 29, 1916, ch. 415, §§ 31, 39, 40, 39 Stat. 543, 544.|
In subsection (a)(1), before subclause (A), the word “duly” is omitted as surplus.
In subsection (b), the words “right . . . is superior” are substituted for “no . . . shall defeat the rights of” for clarity. The words “right to stop the transportation” are substituted for “right of stoppage in transitu” for clarity.
In subsection (c), the word “remedies” is omitted as being included in “right”. The words “whose mortgage or lien on goods would be valid, apart from this chapter” are omitted as unnecessary because of the restatement. The words “which are subject to the mortgage or lien” are omitted as unnecessary.