Iowa Code 554.7501 – Form of negotiation and requirements of due negotiation
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Terms Used In Iowa Code 554.7501
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
554.7501 Form of negotiation and requirements of due negotiation.
1. The following rules apply to a negotiable tangible document of title:
a. If the document’s original terms run to the order of a named person, the document is negotiated by the named person’s indorsement and delivery. After the named person’s indorsement in blank or to bearer, any person may negotiate the document by delivery alone.
b. If the document’s original terms run to bearer, it is negotiated by delivery alone.
c. If the document’s original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated.
d. Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.
e. A document is “”duly negotiated”” if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation.
2. The following rules apply to a negotiable electronic document of title:
a. If the document’s original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document.
b. If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.
c. A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.
3. Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights.
4. The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
[S13, §3138-a37, -a38, -a39, -a40, -a47, -b27, -b28, -b29, -b30, -b37; C24, 27, 31, 35, 39,
§8272 – 8275, 8282, 9697 – 9700, 9707, 9957 – 9961, 9967; C46, 50, 54, 58, 62, §487.28 –
487.31, 487.38, 542.37 – 542.40, 542.47, 554.29 – 554.32, 554.39; C66, 71, 73, 75, 77, 79, 81,
§554.7501]
2007 Acts, ch 30, §29, 45, 46
Referred to in §554D.118
1. The following rules apply to a negotiable tangible document of title:
a. If the document’s original terms run to the order of a named person, the document is negotiated by the named person’s indorsement and delivery. After the named person’s indorsement in blank or to bearer, any person may negotiate the document by delivery alone.
b. If the document’s original terms run to bearer, it is negotiated by delivery alone.
c. If the document’s original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated.
d. Negotiation of the document after it has been indorsed to a named person requires indorsement by the named person and delivery.
e. A document is “”duly negotiated”” if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a monetary obligation.
2. The following rules apply to a negotiable electronic document of title:
a. If the document’s original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Indorsement by the named person is not required to negotiate the document.
b. If the document’s original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.
c. A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.
3. Indorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee’s rights.
4. The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.
[S13, §3138-a37, -a38, -a39, -a40, -a47, -b27, -b28, -b29, -b30, -b37; C24, 27, 31, 35, 39,
§8272 – 8275, 8282, 9697 – 9700, 9707, 9957 – 9961, 9967; C46, 50, 54, 58, 62, §487.28 –
487.31, 487.38, 542.37 – 542.40, 542.47, 554.29 – 554.32, 554.39; C66, 71, 73, 75, 77, 79, 81,
§554.7501]
2007 Acts, ch 30, §29, 45, 46
Referred to in §554D.118