Negotiable and Nonnegotiable Document of Title

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  1. Except as otherwise provided in subsection (c) of this Code section, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.
  2. A document of title other than one described in subsection (a) of this Code section is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.
  3. A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.

(Code 1933, § 109A-7 - 104, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)

The 2010 amendment, effective May 27, 2010, deleted "warehouse receipt, bill of lading, or other" preceding "document" in the catchline; redesignated former subsections (1) and (2) as present subsections (a) and (b), respectively; rewrote present subsection (a); in present subsection (b), substituted "A document of title other than one described in subsection (a) of this Code section" for "Any other document" at the beginning of the first sentence and, in the second sentence, substituted "that states" for "in which it is stated" near the beginning and substituted "an order in a record" for "a written order" near the end; and added subsection (c). See the Editor's notes for applicability.

Editor's notes.

- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.

Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the provisions, decisions under Ga. L. 1937-38, p. 390, §§ 6 and 7, subsequently codified as former Code 1933, §§ 111-406 and 111-407, are included in the annotations for this section.

Effect of one-year provision in warehouse receipt on negotiability.

- Where warehouse receipts with word "negotiable" conspicuously printed upon them recited that cotton was accepted for storage for one year from date of receipts, and they were transferred more than one year after they were dated, insertion of one-year clause did not impair negotiability of the receipts as respects warehouseman if holder purchased them for value supposing them to be negotiable, even if, as respects any party to transaction other than warehouseman, it would not be negotiable. Peoples Whse. Co. v. Commercial Bank & Trust Co., 74 Ga. App. 67, 38 S.E.2d 855 (1946)(decided under former provisions).

Cited in Turfgrass Group v. Ga. Cold Storage Co., 346 Ga. App. 659, 816 S.E.2d 716 (2018).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, § 15. 13 Am. Jur. 2d, Carriers, § 324. 15A Am. Jur. 2d, Commercial Code, §§ 37, 38, 48, 53, 61. Am. Jur. 2d, Secured Transactions, § 49. 78 Am. Jur. 2d, Warehouses, § 59.

C.J.S.

- 13 C.J.S., Carriers, §§ 398-401. 80 C.J.S., Shipping, §§ 256 et seq., 367. 93 C.J.S., Warehousemen and Safe Depositaries, § 36 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 7-104.


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